The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
| Description of Limit | 2021 | 2022 | |||
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| 401(k) Elective Deferrals | $ | 19,500 | $ | 20,500 | |
| 403(b)/457 Elective Deferrals | $ | 19,500 | $ | 20,500 | |
| Annual Compensation Limits | $ | 290,000 | $ | 305,000 | |
| Annual Defined Contribution Limits | $ | 58,000 | $ | 61,000 | |
| Catch-up Contributions | $ | 6,500 | $ | 6,500 | |
| Highly Compensated Employees | $ | 130,000 | $ | 135,000 | |
| Social Security Wage Base | $ | 142,800 | $ | 147,000 | |
| Annual Benefit Limit (Defined Benefit Plans) | $ | 230,000 | $ | 245,000 | |
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| Sources: Internal Revenue Service; Journal of Accountancy. | |||||