Contribution Maximums

Retirement Plan Contributions


IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company sponsored retirement plan and also the maximum contributions an employee (including company owners) may receive from the business. 

Contribution Highlights
  • The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver's Credit all increased for 2022.
  • $20,500 Contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan. 
  • $61,000 The total employee + employer contribution that can be made to a 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan under Section 415(c)(1)(A). 
  • $305,000 The amount of your compensation that can be taken into account when determining employer and employee Contributions. 

401(k), 403(b), Profit-Sharing Plans, etc.

                  2022 

                 2021

Annual Compensation for Contributions

305,000

290,000

Elective Deferrals

20,500

19,500

Catch-Up  Contributions

6,500

6,500

Defined Contribution Limits

61,000

58,000

ESOP Limits

1,230,000/245,000

1,165,000/230,000

Other

                  2022 

                 2021

HCE Threshold

135,000

130,000

Defined Benefit Limits

245,000

230,000

Key Employee

200,000

185,000

457 Elective Deferrals

20,500

19,500

Control Employee (board member or officer)

120,000

115,000

Control Employee (compensation-based)

245,000

230,000

Taxable Wage Base

147,000

142,800

IRAs

                  2022 

                 2021

IRA Contribution Limit

6,000

6,000

IRA Catch-Up Contributions

1,000

1,000

Traditional IRA AGI Deduction Phase-out Starting at

                  2022 

                 2021

Joint Return

109,000

105,000

Single or Head of Household

68,000

66,000

SEP IRA

                  2022 

                 2021

SEP Minimum Compensation

650

650

SEP Maximum Contribution

61,000

58,000

SEP Maximum Compensation

305,000

290,000

SIMPLE IRA

                  2022 

                 2021

SIMPLE Maximum Contribution

14,000

13,500

Catch-Up Contributions

3,000

3,000



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