IRS Announces Higher Retirement Contribution Limits For 401(k)s But Not IRAs
The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans will increase to $20,500 in 2022, up from $19,500 for 2021 and 2020. Contribution limits for 403(b), most 457 plans, and the federal government's Thrift Savings Plan also increase to $20,500. The catch-up contribution limit for employees aged 50 and over remains unchanged at $6,500. Therefore, participants who are 50 and older can contribute up to $27,000 starting in 2022.
The amount individuals can contribute to their SIMPLE retirement accounts will increase from $13,500 to $14,000. The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans remains unchanged at $3,000.
The 2022 limit on annual contributions to an IRA remains unchanged at $6,000. The IRA catch-up contribution limit for individuals aged 50 and over remains $1,000.