2022 Cost-Of-Living Adjustments for Qualified Retirement Plans
The Social Security Administration (SSA) and Internal Revenue Service (IRS) have announced the government’s annual cost-of-living adjustments (COLA) for 2022:
- There was a notable 5.9% increase in Social Security and Supplemental Security Income benefits, which represents the largest benefits increase since 1982 (2008 comes in a close second with a 5.8% increase).
- The IRS adjustments consist of generally across-the-board increases, including the IRS annual compensation amounts and limits for elective deferrals. These and other increases reflect the current inflationary environment, in sharp contrast to 2021’s relatively flat adjustments. However, catch-up contribution limits for 2022 remain unchanged.
| Code Section | 2022 | 2021 | 2020 | 2019 | 2018 |
| 401(a)(17)/404(l) Annual Compensation | $305,000 | $290,000 | $285,000 | $280,000 | $275,000 |
| 402(g)(1) Elective Deferrals | 20,500 | 19,500 | 19,500 | 19,000 | 18,500 |
| 408(k)(2)(C) SEP Minimum Compensation | 650 | 650 | 600 | 600 | 600 |
| 408(k)(3)(C) SEP Maximum Compensation | 305,000 | 290,000 | 285,000 | 280,000 | 275,000 |
| 408(p)(2)(E) SIMPLE Maximum Contributions | 14,000 | 13,500 | 13,500 | 13,000 | 12,500 |
| 409(o)(1)(C)(ii) ESOP Limits | 1,230,000
245,000 |
1,165,000
230,000 |
1,150,000
230,000 |
1,130,000
225,000 |
1,105,000
220,000 |
| 414(q)(1)(B) HCE Threshold | 135,000 | 130,000 | 130,000 | 125,000 | 120,000 |
| 414(v)(2)(B)(i) Catch-up Contributions | 6,500 | 6,500 | 6,500 | 6,000 | 6,000 |
| 414(v)(2)(B)(ii) Catch-up Contributions | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
| 415(b)(1)(A) DB Limits | 245,000 | 230,000 | 230,000 | 225,000 | 220,000 |
| 415(c)(1)(A) DC Limits | 61,000 | 58,000 | 57,000 | 56,000 | 55,000 |
| 416(i)(1)(A)(i) Key Employee | 200,000 | 185,000 | 185,000 | 180,000 | 175,000 |
| 457(e)(15) Deferral Limits | 20,500 | 19,500 | 19,500 | 19,000 | 18,500 |
| 1.61-21(f)(5)(i) Control Employee | 120,000 | 115,000 | 115,000 | 110,000 | 110,000 |
| 1.61-21(f)(5)(iii) Control Employee | 245,000 | 235,000 | 230,000 | 225,000 | 220,000 |
| 219(b)(5)(A) IRA Contribution Limit | 6,000 | 6,000 | 6,000 | 6,000 | 5,500 |
| 219(b)(5)(B) IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Taxable Wage Base for Social Security | 147,000 | 142,800 | 137,700 | 132,900 | 128,700 |
