• (775) - 400 - 1322

  • info@hrindemand.com

  • 140 Washington Street, Suite #200

Featured image showing IRA written on a stick and jar with dollars.

IRS Releases 2022 Retirement Contribution Limits

401(k) Contribution Limit Increased to $20,500

The Internal Revenue Service (IRS) has released Notice 2021-61, which contains cost-of-living adjustments for 2022 that affect amounts employees can contribute to 401(k) plans and individual retirement accounts (IRAs). The employee contribution limit for 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020.

Other key limit increases include the following:

  • The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans is increased to $14,000, up from $13,500.
  • The limits used to define a “highly compensated employee” and a “key employee” are increased to $135,000 (up from $130,000) and $200,000 (up from $185,000), respectively.

Key limits that remain unchanged include the employee contribution limit for IRAs (remaining at $6,000) and the catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan (remaining at $6,500).

For additional information and assistance with all of your HR needs, contact the experts at HRinDemand, Your Total People Solution.

Are you interested in taking your team to the next level? If so, contact the experts at HRinDemand. We use Predictive Index’s state-of-the-art software to help businesses effectively hire, manage and outgrow their competition.

We are offering a self-awareness evaluation – normally $1,000 for 25% off. The evaluation will give you valuable insight into your employee’s personality, strengths and weaknesses. Leverage it for productivity and team management.

If you liked this post, see How To Whip Our Social Skills Back Into ShapeFree Webinar From the Founder of HRinDemand – The HR Pandemic PivotHow to Get On the Right Side of the Predicted Post Pandemic Labor Shuffle and Tips For Effective Workforce Planning.

Melissa Marsh, SPHR, SHRM-SCP, is a human resources consultant and founder of HRinDemand, a human resources company in Reno, NV, offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth.