Nov 04, 2021
Each year, the Internal Revenue Service publishes updated dollar limitations for tax-qualified defined benefit and defined contribution plans. The limits are important for tax-qualified plans, as well as many non-qualified plans.
The IRS announced recently that there will be cost of living adjustments (COLA) to certain of the qualified plan limitations described below for 2022:
2022 Cost of Living Adjustments
| Summary |
2021 Limit |
2022 Limit |
| Dollar Limit on Elective Deferrals |
$19,500 |
$20,500 |
| Catch-up Contribution Limit |
$6,500 |
$6,500 |
| Annual Compensation Limit |
$290,000 |
$305,000 |
| Section 415 Annual Additions Limit |
$58,000 |
$61,000 |
| Highly Compensated Employee |
$130,000 |
$135,000 |
| Key Employee (Officers) |
$185,000 |
$200,000 |
You may view the complete list of updated limits here.
The information contained herein is for informational purposes only. Information contained herein is based on authorities that are subject to change and is provided on an “as is” basis without warranty of any kind. Newport does not assume any liability for any errors, omissions or damages resulting from the use of the information. Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Newport and its affiliates do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before making any decisions. This document may not be reproduced or distributed in any form or by any means without Newport’s written permission.
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