IRS Increases Maximum 401(k) Contributions for 2022

Jan. 3, 2022

Individuals can now put more of their earnings into their 401(k) plans. 

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.

About the Author

Ratchet+Wrench Staff Reporters

The Ratchet+Wrench staff reporters have a combined two-plus decades of journalism and mechanical repair experience.

Sponsored Recommendations

View insights, research and solutions curated specifically for shops like yours.
Our dedicated Valvoline Trusted Advisor Sales and Support Team provides hands-on classroom and targeted in-store coaching to help your employees become more skilled at selling...
Increase Sales and Customer Traffic To Your Store(s).
Reinvigorate your team and business success behind Valvoline's proven strategy that helps separate your business from competitors and create meaningful growth in sales and customer...