IRS increases 401(k) contribution limit to $20,500

November 4, 2021

The IRS has increased the contribution limit for employees who participate in 401(k) retirement plans to $20,500 for 2022. The contribution limit for 2021 and 2020 plans was $19,500.

The IRS also issued technical guidance regarding the cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2022.

The agency kept the $6,000 limit on annual contributions to an IRA. 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. Learn more.

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