
Know Your Limits
On October 21st the IRS released Notice 2022-55 which issued guidance regarding the cost-of-living adjustments affecting dollar limitations for various retirement plans. Below are some of the noteworthy changes. You can read the full notice here.
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500, up from $20,500.
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $7,500, up from $6,500.
- The limit on annual contributions to an IRA increased to $6,500, up from $6,000.
- 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.
- The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.
- The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000.
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