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Retirement Plans Newsletter

BULLETIN
November 4, 2021

 

[Official Guidance]

Text of IRS Notice 2021-61: 2022 Limitations Adjusted as Provided in Section 415(d), Etc. (PDF)

"Effective January 1, 2022, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) of the Code is increased from $230,000 to $245,000....

The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2022 from $58,000 to $61,000....

The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $19,500 to $20,500.

The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $290,000 to $305,000.

The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of 'key employee' in a top-heavy plan is increased from $185,000 to $200,000....

The limitation used in the definition of 'highly compensated employee' under section 414(q)(1)(B) is increased from $130,000 to $135,000.

The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or over remains unchanged at $6,500....

The compensation amount under section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $650.

The limitation under section 408(p)(2)(E) regarding SIMPLE retirement accounts is increased from $13,500 to $14,000....

The compensation amount under Section 1.61-21(f)(5)(i) of the Income Tax Regulations concerning the definition of 'control employee' for fringe benefit valuation purposes is increased from $115,000 to $120,000. The compensation amount under Section 1.61-21(f)(5)(iii) is increased from $235,000 to $245,000.

The dollar limitation on premiums paid with respect to a qualifying longevity annuity contract under Section 1.401(a)(9)-6, A-17(b)(2)(i) of the Regulations is increased from $135,000 to $145,000....

The applicable dollar amount under section 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is increased from $105,000 to $109,000....

The adjusted gross income limitation under section 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $198,000 to $204,000.... [U]nder section 408A(c)(3)(A), the adjusted gross income phase-out range for taxpayers making contributions to a Roth IRA is $204,000 to $214,000 for married couples filing jointly, increased from $198,000 to $208,000."  MORE >>

Internal Revenue Service [IRS]

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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587.

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