2022 401(k) Contribution Limit
For 2022, the 401(k) Contribution Limit is $20,500 (Elective deferral) and +$6,500 (Age 50 catch-up).
Effective 2022-01-01Source: Notice 2021-61 (IRS)Verified 2026-09-01
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Elective deferral | $19,500 | $20,500 | +$1,000 (+5.1%) |
| Age 50 catch-up | +$6,500 | +$6,500 | +$0 (+0.0%) |
Who it applies to
Employees who participate in a plan described in section 401(k) offered by their employer
What changed this year, and why
For 2022, the IRS increased the elective deferral limit under section 401(k) plans to $20,500, effective January 1, 2022. The age 50 catch-up contribution limit remains unchanged at $6,500.
Common questions
- What is the contribution limit for 2022?
- For 2022, employees may defer up to $20,500 of their compensation into a plan described in section 401(k) as elective deferrals.
- Is there an additional limit for workers age 50 or older?
- Yes. Employees who are age 50 or older by the end of 2022 may make an additional catch-up contribution of $6,500 on top of the regular elective deferral limit.
What the limit counts, and the tax it does not save
An elective deferral is the amount you choose to have your employer contribute to a retirement fund instead of paying it to you as regular compensation. The key tax treatment is that traditional elective deferrals are not included in your wages subject to federal income tax at the time they are contributed. However, these amounts are still included in wages subject to social security and Medicare taxes, so they do not reduce your payroll tax burden. This means you continue to pay FICA taxes on money you never see in your paycheck. The deferral is treated as an employer contribution to a qualified plan. Designated Roth contributions are also elective deferrals, but they are included in your income in the year contributed rather than being tax-deferred until distribution. Elective deferrals include contributions to various retirement plans such as cash or deferred arrangements, salary reduction plans, and tax-sheltered annuities.
An elective deferral, other than a designated Roth contribution (dis- cussed later), isn't included in wages subject to income tax at the time contributed. However, it’s included in wages subject to social security and Medicare taxes.
Publication 525 (2022), Taxable and Nontaxable Income (IRS)
One limit across every plan you defer into
The $20,500 limit for 2022 is an overall limit that applies across all the retirement plans where you make elective deferrals. If you participate in multiple plans, the total amount you defer across all these plans combined should not exceed $20,500 for the year. This overall limit applies unless you are 50 or older and eligible for catch-up contributions. Your employer or plan administrator should apply the proper annual limit when calculating your contributions, but you are personally responsible for monitoring the total amount you defer to ensure it does not exceed the overall limit. Specific plan limits for certain plans like SIMPLE plans and section 501(c)(18) plans are discussed separately, but amounts deferred under those specific plan limits are still part of the overall limit on deferrals. The overall limit ensures that workers cannot circumvent the contribution cap by spreading deferrals across multiple employer plans.
For 2022, you shouldn't have deferred more than a total of $20,500 of contributions to the plans listed in (1) through (3), earlier, unless you are 50 or older. The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Amounts deferred under specific plan limits are part of the overall limit on deferrals.
Publication 525 (2022), Taxable and Nontaxable Income (IRS)
The catch-up once you are old enough for it
If you are age 50 or older by the end of your tax year, the IRS lets you put extra money into your 401(k) on top of the regular annual limit. For 2022, that extra amount — the catch-up contribution — is $6,500 for section 401(k) plans, as well as for 403(b) plans, the Thrift Savings Plan, SAR-SEP plans, and governmental section 457 plans. The catch-up sits above the $20,500 elective deferral limit, so a participant who is 50 or older can defer up to $20,500 plus the $6,500 catch-up. Your employer or plan administrator will normally apply the correct limit when processing contributions, but you remain responsible for watching your total deferrals to make sure they stay within the combined cap. SIMPLE plans use a smaller catch-up figure, but for a standard 401(k) the $6,500 figure is the one to use in 2022.
Catch-up contributions. You may be allowed catch-up contributions (additional elective de- ferrals) if you're age 50 or older by the end of your tax year. For 2022, the catch-up limit for section 401(k) and 403(b) plans, the TSP, SAR- SEP plans, and governmental section 457 plans is $6,500.
Publication 525 (2022), Taxable and Nontaxable Income (IRS)
What happens if you defer more than the limit
If your elective deferrals exceed the annual limit, you must notify your plan by the date required by the plan. If the plan permits, the excess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. The excess deferral must be included in your income for the year of the deferral. If you do not take out the excess amount, you are taxed twice on the excess deferral left in the plan - once when you contribute it, and again when you receive it as a distribution (unless the excess deferral was a designated Roth contribution). The plan must pay you the excess amount along with any income earned on that amount by April 15 of the following year to avoid this double taxation.
Excess deferrals. If your deferrals exceed the limit, you must notify your plan by the date re- quired by the plan. If the plan permits, the ex- cess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that per- mit these distributions.
Publication 525 (2022), Taxable and Nontaxable Income (IRS)
Roth deferrals count against the same limit
Employers with 401(k) plans can offer designated Roth contributions, allowing you to elect to have part or all of your elective deferrals treated as after-tax Roth contributions. These designated Roth contributions are treated as elective deferrals for limit purposes, except that they are included in your income. This means your Roth deferrals count against the same annual limit as traditional pre-tax deferrals. For 2022, the overall elective deferral limit is $20,500, and this limit applies to the combined total of your Roth and pre-tax contributions, not separately to each. If you are age 50 or older, you can also make catch-up contributions of $6,500 on top of the regular limit, and this catch-up amount applies to the combined total as well. Your retirement plan must maintain separate accounts and record-keeping for the designated Roth contributions to track the after-tax amounts.
Designated Roth contributions are treated as elective deferrals, except that they're included in income.
Publication 525 (2022), Taxable and Nontaxable Income (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2021-61 (IRS)
- Elective deferral
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.
- Age 50 catch-up
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.