IRS Notice 2021-61 confirms Mercer’s earlier projections of key Internal Revenue Code retirement plan limits for 2022. The 2022 limits reflect a 5.34% increase in the Consumer Price Index for All Urban Consumers (CPI-U) from third quarter 2020 to third quarter 2021. The following table shows selected limits for 2021 and 2022:
IRC retirement plan limit |
2022 |
2021 |
401(k), 403(b) and eligible 457 plan elective deferrals (and designated Roth contributions) |
$20,500 |
$19,500 |
414(v)(2)(B)(i) catch-up contributions (plans other than SIMPLE plans) |
$6,500 |
$6,500 |
415(b) defined benefit plan maximum annuity |
$245,000 |
$230,000 |
415(c) defined contribution plan maximum annual addition |
$61,000 |
$58,000 |
401(a)(17) and 408(k)(3)(C) compensation |
$305,000 |
$290,000 |
414(q)(1)(B) highly-compensated employee and 414(q)(1)(C) top-paid group |
$135,000 |
$130,000 |
416(i)(1)(A)(i) officer compensation for top-heavy plan key employee |
$200,000 |
$185,000 |
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