Retirement Plan Contribution Limit Increases For 2022
The IRS recently announced that beginning in 2022, taxpayers will be allowed to contribute an additional $1,000 into their 401(k), 403(b) and most 457 plans. The 2022 contribution limit for these retirement plans will increase from the current level of $19,500 to $20,500.
Employee catch-up contributions (age 50 or older by year-end) will remain the same for 2022 - $6,500. Plan participants must make catch-up contributions to a retirement plan via elective deferrals. Catch-up contributions must be made before the end of the plan year.
The limits for IRA contributions and IRA catch-up contributions remain unchanged.
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