The Internal Revenue Service announced the 2022 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2022. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2021 limits. Other limits, such as the dollar limit for catch-up contributions (if age 50 or older), will remain unchanged.
RETIREMENT PLAN LIMITS
| 2022 Limits | 2021 Limits | |
| 401(k)/403(b)/457(b) Elective Deferrals | $20,500 | $19,500 |
| Catch-Up Contribution (plans other than SIMPLE plans) | $6,500 | $6,500 |
| SIMPLE Plan Employee Deferrals | $14,000 | $13,500 |
| SIMPLE Plan Catch-Up Contributions | $3,000 | $3,000 |
| Plan Maximum Annual Contribution – Defined Contribution Plans (Section 415(c)) | $61,000 | $58,000 |
| Maximum Annual Benefit – Defined Benefit Plans (Section 415(b)) | $245,000 | $230,000 |
| Compensation Limit under Section 401(a)(17) | $305,000 | $290,000 |
| Highly Compensated Employee Definition under Section 414(q) | $135,000 | $130,000 |
| Key Employees Officer Compensation for Top-Heavy Plans | $200,000 | $185,000 |
| ESOP limit for determining the maximum account balance subject to the 5-year distribution limit | $1,230,000 | $1,165,000 |
| ESOP dollar amount used for determining the lengthening of the 5-year distribution period | $245,000 | $230,000 |
HEALTH AND WELFARE PLAN LIMITS
Health Savings Account and High Deductible Health Plan Limits
Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2022. The HSA limit for self-only/family coverage will increase to $3,650 and $7,300, respectively for 2022. The maximum annual out-of-pocket expense limits for high deductible health plans for self-only and family coverage will increase in 2022 but the minimum annual deductible will remain unchanged from 2021 limits.
Health Savings Accounts/HDHP Limits
| 2022 Limits | 2021 Limits | |
| HSA Contribution — Annual Contribution Limit | ||
| Self-Only Coverage | $3,650 | $3,600 |
| Family Coverage | $7,300 | $7,200 |
| Catch-Up Contributions (age 55 or older) | $1,000 | $1,000 |
| High Deductible Health Plan – Minimum Annual Deductible | ||
| Self-Only Coverage | $1,400 | $1,400 |
| Family Coverage | $2,800 | $2,800 |
| High Deductible Health Plan – Maximum Out of Pocket Limit | ||
| Self-Only Coverage | $7,050 | $7,000 |
| Family Coverage | $14,100 | $14,000 |
SOCIAL SECURITY WAGES BASE
Social Security Wage Base
| 2022 Limit | 2021 Limit | |
| Social Security (FICA) Wage Base | $147,000 | $142,800 |
