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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Article ID: 16, Created: 4/16/2021 at 12:36 PM, Modified: 11/5/2021 at 11:00 AM