November 03, 2021

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

Related resources

Non-Mercer resource

Mercer Law & Policy resource

Margaret Berger
by Margaret Berger

Partner, Mercer’s Law & Policy Group

Brian Kearney
by Brian Kearney

Principal, Mercer’s Law & Policy Group


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