Skip to Main Content

Insight

November 5, 2021
Holland & Hart News Update

2022 IRS Cost of Living Adjustments Announced

The IRS has announced the 2022 cost of living adjustments to qualified plan limits. As expected, many of the limits increased significantly compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.

401(k), 403(b), Profit-Sharing Plans, etc.
2022 2021 2020
Annual Compensation 305,000 290,000 285,000
Elective Deferrals 20,500 19,500 19,500
Catch-up Contributions 6,500 6,500 6,500
Defined Contribution Limit 61,000 58,000 57,000
ESOP Distribution Limits 1,230,000
245,000
1,165,000
230,000
1,150,000
230,000
Defined Benefit Limit 245,000 230,000 230,000
HCE Threshold 135,000 130,000 130,000
Key Employee 200,000 185,000 185,000
457 Elective Deferrals 20,500 19,500 19,000
Taxable Wage Base 147,000 142,800 137,700

This publication is designed to provide general information on pertinent legal topics. The statements made are provided for educational purposes only. They do not constitute legal or financial advice nor do they necessarily reflect the views of Holland & Hart LLP or any of its attorneys other than the author(s). This publication is not intended to create an attorney-client relationship between you and Holland & Hart LLP. Substantive changes in the law subsequent to the date of this publication might affect the analysis or commentary. Similarly, the analysis may differ depending on the jurisdiction or circumstances. If you have specific questions as to the application of the law to your activities, you should seek the advice of your legal counsel.

DISCLAIMER

Unless you are a current client of Holland & Hart LLP, please do not send any confidential information by email. If you are not a current client and send an email to an individual at Holland & Hart LLP, you acknowledge that we have no obligation to maintain the confidentiality of any information you submit to us, unless we have already agreed to represent you or we later agree to do so. Thus, we may represent a party adverse to you, even if the information you submit to us could be used against you in a matter, and even if you submitted it in a good faith effort to retain us.