January 18, 2022

Volume XII, Number 18

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2022 Cost of Living Adjustments

The Internal Revenue Service has announced the 2022 cost of living adjustments to various limits. The adjusted amounts generally apply for plan years beginning in 2022. Some of the adjusted amounts, however, apply to calendar year 2022. Please click for a printer-friendly version of the table below. 

Employee Benefit Plans

Plan Year

2022

2021

401(k), 403(b), 457 deferral limit

$20,500

$19,500

Catch-up contribution limit (age 50 or older by end of year)

$6,500

$6,500

Annual compensation limit

$305,000

$290,000

Annual benefits payable under defined benefit plans

$245,000

$230,000

Annual allocations to accounts in defined contribution plans

$61,000
(but not more than 100% of compensation)

$58,000
(but not more than 100% of compensation)

Highly compensated employee

Compensation more than $135,000 in 2021 plan year

Compensation more than $130,000 in 2020 plan year

Health Savings Accounts

Calendar Year

2022

2021

Maximum contribution

Family
Self

$7,300
$3,650

$7,200
$3,600

Catch-up contribution
(participants who are 55 by end of year)

$1,000

$1,000

Minimum deductible

 

 

Family
Self

$2,800
$1,400

$2,800
$1,400

Maximum out-of-pocket

 

 

Family
Self

$14,000
$7,050

$14,000
$7,000

Social Security

Calendar Year

2022

2021

Taxable wage base

$147,000

$142,800

Maximum earnings without loss of benefits

 

 

Under full retirement age
Year you reach full retirement age

$1,630/mo. ($19,560/yr.)

$4,330/mo. up to month of full retirement age ($51,960/yr.)

$1,580/mo. ($18,960/yr.)

$4,210/mo. up to month of full retirement age ($50,520/yr.)

Social Security Retirement Age

Year of Birth

Retirement Age

Prior to 1938

Age 65

1938

65 and 2 months

1939

65 and 4 months

1940

65 and 6 months

1941

65 and 8 months

1942

65 and 10 months

1943 – 1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 and later

67

 

 

© 2022 Varnum LLPNational Law Review, Volume XI, Number 313
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About this Author

Kristy L. De Vos, Employee Benefits Paralegal, Varnum,
Paralegal

Kristy focuses her Employee Benefits practice on retirement plans. In addition to drafting plans, she submits plans to IRS for opinion and determination letters, and submits plans to IRS under the Voluntary Compliance Program and to the U.S. Department of Labor under the Voluntary Fiduciary Correction Program.

Her experience also includes drafting plan amendments, consent resolutions, Summary Plan Descriptions, Summaries of Material Modifications, 204(h) Notices, and plan administrative forms. Kristy answers client questions about plan administration and assists...

616-336-6564
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