The Internal Revenue Service has announced new contribution limits to 401(k) in 2022. The new limit will be $ 20,500 coming from a cap of $ 19,500 in 2021. The changes also concern 403(b) plans, such as 457 plans and Thrift Savings Plans.
The 457 plans are deferred-compensation plans available for government and non-government employers. Thrift Savings Plans are savings for federal employees and people in uniformed jobs.
People who are 50 or more can contribute with a “catch-up” to the retirement plans of $ 6,500 and has not increased for 2022. Through the additional contribution, a person who is 50 or older can contribute up to $ 27,000 next year.
Adapted from Forbes