2022 Retirement Contribution Limits and Social Security Wage Base Announced

The IRS has announced the 403(b) and 457 plan regular elective deferral contribution limits will increase for 2022: The regular elective deferral limit is $20,500 per calendar year, previously $19,500. The catch-up contribution limit for employees age 50 and older remains at $6,500 per calendar year. Both the 403(b) and 457 plans offer additional catch-up contribution provisions. A calculation is required to determine the actual amount, if any, available under these special catch-up provisions. 

The Social Security Administration has announced the 2022 social security wage base will be $147,000. The tax rate remains the same at 6.2%. As in prior years, there is no limit to the wages subject to the Medicare tax. The tax rate of 1.45% also remains unchanged. 

If you have any questions about either of these items, contact Steve Jordan, Senior Payroll Specialist.