Retirement Plan Limits 2022

Retirement Plan Limits 2022

Current and Historical Retirement Plan Limits

Limitation 2022 2021 2020 2019 2018
Plan Compensation $305,000 $290,000 $285,000 $280,000 $275,000
Highly Compensated Employee* $135,000 $130,000 $130,000 $125,000 $120,000
Individual Retirement Account ("IRA") $6,000 $6,000 $6,000 $6,000 $5,500
IRA Catch-up $1,000 $1,000 $1,000 $1,000 $1,000
SIMPLE IRA $14,000 $13,500 $13,500 $13,000 $12,500
401(k) Deferrals $20,500 $19,500 $19,500 $19,000 $18,500
401(k) Catch-up $6,500 $6,500 $6,500 $6,000 $6,000
Simplified Employee Pension ("SEP") $61,000 $58,000 $57,000 $56,000 $55,000
Defined Contribution with Catch-up $67,500 $64,500 $63,500 $62,000 $61,000
Defined Benefit Annuity $245,000 $230,000 $230,000 $225,000 $220,000
Defined Benefit Lump Sum at Age 62 $3.2 million $2.9 million $2.9 million $2.9 million $2.8 million

When a 401(k) or SEP is not enough, a Defined Benefit Plans has a much higher potential contribution limit. The Defined Benefit Plan limit varies on a number of factors, including the business owner's age and earned income. An actuarial calculation can determine how much you can contribute to a Defined Benefit Plan.





Need a Higher Retirement Plan Deduction?

Limitation 2022 2021 2020
Plan Compensation $305,000 $290,000 $285,000
Highly Compensated Employee* $135,000 $130,000 $130,000
Individual Retirement Account ("IRA") $6,000 $6,000 $6,000
IRA Catch-up $1,000 $1,000 $1,000
SIMPLE IRA $14,000 $13,500 $13,500
401(k) Deferral $20,500 $19,500 $19,500
401(k) Catch-up $6,500 $6,500 $6,500
Simplified Employee Pension ("SEP") $61,000 $58,000 $57,000
Defined Contribution w/ Catch-up $67,500 $64,500 $63,500
Defined Benefit Annuity $245,000 $230,000 $230,000
Defined Benefit Lump Sum at Age 62 $3.2 MM $2.9 MM $2.9 MM

* Highly Compensated Employees are determined using the prior year compensation. For example, an employee is generally Highly Compensated in 2023 if their 2022 compensation exceeds $135,000. Employees also may be Highly Compensated based on business ownership or attribution of business ownership.