2022 COLA Announcement

Cost of Living Announcement

November 5, 2021

It’s that time of year again. The Internal Revenue Service has announced the 2022 retirement plan limits and the Social Security wage bases and rates.

The Contribution limit has been increased to $20,500, while the Catch-Up provision is staying at $6,500.

Notable changes are:

  • The Defined Contribution Maximum increased from $58,000 to $61,000
  • Annual Compensation limit increased from $290,000 to $305,000

This chart shows the maximum benefit and contribution limits for 2022. These new limits become effective January 1, 2022.

We recommend that you confirm with your payroll provider that all of their systems will be updated with these new limits. Specifically confirming that any calculations based on these updated limits will also be updated (such as your match). Feel free to reach out to the Marsh McLennan Agency Retirement Services team with any questions you may have.