IRS Notice: Qualified Plan Dollar Limitations for 2022 Increases 401(k) Limit to $20,500 (IRC §415)

Cost-of-living adjustments affecting dollar limitations for pension plans for 2022, the IRS announced November 4. The amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020, the IRS provided. However, the annual contributions to an IRA remains unchanged at $6,000, and the IRA catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000, the IRS stated. Other inflation adjustments based on tax code Section 415 are given. [Notice 2021-61, 2021-47 I.R.B. __ (Nov. 22, 2021); IR-2021-216 (Nov. 4, 2021)] ...