On Nov. 4, 2021, the Internal Revenue Service (IRS) announced new caps for employee and company 401(k) contributions in 2022:
|Maximum employee elective deferral (age 49 and younger)||$19,500||$20,500|
|Employee catch-up contribution (age 50 or older)||$6,500||$6,500|
|Maximum employee elective deferral plus catch-up||$26,000||$27,000|
The new 2022 limits have been updated in our payroll system to ensure that the contributions from our clients’ employees do not exceed the annual dollar limits. Please let us know if you have any questions.