IRS Increases Maximum 401(k) Contributions for 2022
Jan. 3, 2022—The IRS has increased the amount an individual can contribute to their 401(k) in 2022, Forbes reported.
In 2021, the maximum amount was $19,500. That has been raised to $20,500. This new limit also applies to 403(b) plans, most 457 plans and Thrift Savings Plans.
People who are age 50 and up can contribute a “catch-up contribution” to the retirement plans listed above in 2022 of $6,500, which has not increased from 2021.
By adding the overall increase to the catch-up contribution, a 50-year-old (or older) participant can contribute up to $27,000 in 2022.