401(k) contributions are up for 2022

401(k) participants can contribute up to $20,500 to their 401(k) retirement accounts in 2022, up from $19,500 in 2021 and 2020, according to the Internal Revenue Service annual cost of living adjustment notice.

The higher contribution limit also applies to other retirement accounts, including 403(b) plans, most 457 plans, and the federal Thrift Savings Plan.

Catch-up contributions to retirement accounts for those age 50 and up will remain unchanged at $6,500. Including their regular contributions, people 50 and up will be able to stash up to $27,000.

The contribution limit for individual retirement accounts will also stay the same at $6,000. That limit has not increased since 2019. Individuals over 50 can stash an extra $1,000 in IRAs. That amount is also unchanged.

The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2022 from $58,000 to $61,000.

The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $290,000 to $305,000.

The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $185,000 to $200,000.

The limitation used in the definition of “highly compensated employee” under section 414(q)(1)(B) is increased from $130,000 to $135,000.

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