2022 Qualified Plan Cost of Living, 2022 Social Security Taxable Wage Base | Ruder Ware – Community News
Social Security

2022 Qualified Plan Cost of Living, 2022 Social Security Taxable Wage Base | Ruder Ware

On November 4, 2021, the Internal Revenue Service announced cost-of-living adjustments for the various limits for qualified retirement plans. The vast majority of the limits below have been increased compared to last year.

Qualified Subscription Limit Cost of Living Adjustments
401(k) and 403(b) delay options limit 2021 – $19,500

2022 – $20,500

$200,000 Compensation Limit 2021 – $290,000

2022 – $305,000

$160,000 defined benefit limit 2021 – $230,000

2022 – $245,000

$40,000 defined contribution limit 2021 – $58,000

2022 – $61,000

$80,000 definition of high paid worker 2021 – $130,000

2022 – $135,000

SIMPLE IRA Deferral Limit 2021 – $13,500

2022 – $14,000

Code Section 457 Deferred Compensation Plan Deferral Limit 2021 – $19,500

2022 – $20,500

Code Section 414(v) Employee Deferral Compensation Limit 2021 – $6,500

2022 – $6,500

All of the above are limits for the plan year (ie, for the plan year beginning in 2022), with the exception of the Code Section 401(k) and Code Section 403(b) deferral choice limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wage for the OASDI portion of the Social Security tax at $147,000 for 2022, which is an increase from the 2021 cap of $142,800.