Highlights: The 401(k) deferral limit increased to $20,500. The FICA taxable wage base increased to $147,000. The maximum plan compensation limit increased to $305,000 and the maximum annual addition increased to $61,000.
Indexed Plan Limits
| 2022 | 2021 | |
| Deferral Limits | ||
| 401(k) Plan or SAR-SEP | $20,500 | $19,500 |
| 403(b) Plan or 457 Plan | 20,500 | 19,500 |
| Catch-Up Contribution, 401(k)/403(b)/457 | 6,500 | 6,500 |
| SIMPLE Plan | 14,000 | 13,500 |
| SIMPLE Plan Catch-Up Contribution | 3,000 | 3,000 |
| Individual Retirement Accounts (IRAs) | ||
| Traditional, Roth, Spousal (earnings limits apply) | 6,000 | 6,000 |
| Catch-Up Contributions, IRA | 1,000 | 1,000 |
| Section 415 Limit | ||
| Defined Contribution Plans | 61,000 | 58,000 |
| Defined Benefit Plans | 245,000 | 230,000 |
| Compensation Test | ||
| Highly Compensated Employees | 135,000 | 130,000 |
| Key Employee-Top Heavy Plan | 200,000 | 185,000 |
| Includible Compensation | ||
| Maximum Qualified Plan Compensation | 305,000 | 290,000 |
| SEP Compensation | 305,000 | 290,000 |
| SEP Earnings Threshold | 650 | 650 |
| Limited Governmental Plans (pre 7/1/93) | 450,000 | 430,000 |
| FICA Taxable Wage Base | ||
| Social Security (Tax Rate 6.20%) | 147,000 | 142,800 |
| Medicare (Tax Rate 1.45%) | No limit | No limit |
Earnings Ceiling for Social Security
2022 2021
Below FRA* $19,560 $18,960
Attainment of FRA* (prorated) $51,960 $50,520
Above FRA* Unlimited Unlimited
* Full Retirement Age (FRA)
age 66 and 2 months for those born in 1955
age 66 and 4 months for those born in 1956
(FRA will gradually rise to 67 for those born 1960 or later)
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