2022 Plan Limits

The IRS has released the 2022 Plan Limits. Below are a few highlights of the changes. See https://www.irs.gov/pub/irs-drop/n-21-61.pdf for the full release.

• The annual benefit limit under a defined benefit plan under § 415(b)(1)(A) is increased from $230,000 to $245,000.
• The limitation for defined contribution plans under § 415(c)(1)(A) is increased in 2022 from $58,000 to $61,000.
• The contribution limit for an employee who participate in their employer’s 401(k) has increased from $19,500 to $20,500 for 2022, and the catch-up limit for employees age 50 and over remains unchanged at $6,500.