COST-OF-LIVING ADJUSTMENTS - 2022
Pension Plan and Related Limits | 2022 |
Pre-tax elective deferral maximum under IRC § 401(k), 403(b), and 457(b) plans (IRC §§ 402(g)(3) & 457 (e)(15)) | $20,500 |
Age 50 and older “catch-up” adjustment for 401(k), 403(b), and governmental 457(b) plans and SEPs (IRC § 414(v)(2)(B)(i)) | $6,500 |
Annual compensation limit under IRC §§ 401(a)(17), 404(l) and 408(k) | $305,000 |
Annual benefit limit for defined benefit plans under IRC § 415(b) | $245,000 |
Annual contribution limit for defined contribution plans under IRC § 415(c) | $61,000 |
Highly compensated employee threshold for purposes of nondiscrimination testing in the following year under IRC § 414(q)(1)(B) | $135,000 |
Key employee threshold for officers for top heavy plan under IRC § 416(i)(1)(A)(i) | $200,000 |
ESOP account balance for 5 and 1 year distributions under IRC § 409(o)(1)(C)(ii) | $1,230,000 and $245,000 |
Limit on premiums paid for qualified longevity annuity contracts (QLACs) under Treas. Reg. § 1.401(a)(9)-6 (adopted 2014) | $145,000 |
Minimum earnings level to qualify for SEP under IRC § 408(k) | $650 (unchanged) |
SIMPLE plan elective deferral limit under IRC § 408(p)(2)(E) | $14,000 |
SIMPLE 401(k) or IRA age 50 catch-up (IRC § 414(v)(2)(B)(ii)) | $3,000 (unchanged) |
Basic/Roth IRA contribution limit under IRC §§ 219(b)(5)(A) & 408A. (Age 50 $1,000 IRA catchups do not have cost-of-living adjustments) | $6,000 (unchanged) |
Adjusted gross income (AGI) phase-out of deduction for IRA where participant or spouse also participates in an employer-sponsored retirement plan (IRC § 219(g)(1) & (3)) For married joint filers – For single filers – | $109,000/$129,000 $68,000 to $78,000 |
AGI phase-out of deduction for contribution to IRA for join filers where spouse who is contributing to the IRA also participates in the employer-sponsored retirement plan (IRC § 219(g)(7)) | $204,000/$214,000 |
AGI phase-out of deduction for contribution to Roth IRA (IRC § 408A(c)(3)(B)). For married joint filers – | $204,000/$214,000 $129,000/$144,000 |
Health Savings Account contribution limits (single and family) | $3,650 and $7,300 |
PBGC guaranteed benefit (annual single life annuity beginning at age 65) (rounded) | $74,455 |
PBGC flat-rate premiums per participant for single-employer plans | $88 |
PBGC variable-rate premium for single-employer plans per $1,000 of Unfunded Vested Benefits | $48 |
PBGC (flat-rate) premiums for multiemployer plans per participant | $32 |
Taxable wage base subject to FICA tax | $147,000 |
Sample DOL Penalties – Per Day -- Failure to file annual report (Form 5500) - ERISA § 502(c)(2) (originally $1,000 a day) -- Failure to provide blackout notices or notices of diversification rights - ERISA§ 502(c)(7) (originally $100 a day) | TBA ($2,223 in 2021) TBA ($141 in 2021) |
