On November 4, 2021, the Internal Revenue Service (IRS) released the 2022 dollar limitations that apply to tax-qualified retirement plans. With few exceptions, the 2022 limitations published in Notice 2021-61 have been adjusted upwards. Catch-up contribution maximums and the compensation amount for simplified employee pensions (SEPs) have not changed. The table below lists key 2022 amounts that affect tax-qualified retirement plans, compared to the current amounts.

Internal Revenue Code (IRC) or Regulation Section 2022 2021
Defined benefit plan limit: IRC § 415(b)(1)(A) $245,000 $230,000
Defined contribution plan limit: IRC § 415(c)(1)(A) $61,000 $58,000
Elective deferral exclusion limitation: IRC § 402(g)(1) $20,500 $19,500
Annual compensation limit:
IRC §§ 401(a)(17) and 404(l)
$305,000 $290,000
Annual simplified employee pension (SEP) compensation limit: IRC § 408(k)(3)(C) $305,000 $290,000
Key employee dollar limitation in top-heavy plans: IRC § 416(i)(1)(A)(i) $200,000 $185,000
Employee stock ownership plan (ESOP) maximum account balance: IRC § 409(o)(1)(C)(ii) $1,230,000 $1,165,000
ESOP dollar amount to determine lengthening of five-year distribution period: IRC § 409(o)(1)(C)(ii) $245,000 $230,000
Highly compensated employee limitation: IRC § 414(q)(1)(B) $135,000 $130,000
Catch-up contributions limitation:
IRC § 414(v)(2)(B)(i)
$6,500 $6,500
Savings incentive match plan for employees (SIMPLE) catch-up contributions limitation:
IRC § 414(v)(2)(B)(ii)
$3,000 $3,000
SEP compensation amount: IRC § 408(k)(2)(C) $650 $650
SIMPLE contribution limit: IRC § 408(p)(2)(E) $14,000 $13,500
Deferral limitation: IRC § 457(e)(15) $20,500 $19,500
Social Security tax wage base $147,000 $142,800