Reminder for Texa$aver participants: higher contribution limits in 2022 for 401(k) / 457 accounts
Here’s a brief reminder for Texa$averSM participants: Effective Jan. 1, 2022, the IRS raised annual contribution limits for 401(k) or 457 accounts. The special 457 plan catch-up contribution amount for participants who are age 50 or older also increased for 2022.
The 2022 contribution limit for 401(k) and 457 accounts is $20,500 or 99% of the participant’s eligible compensation, whichever is less. That’s a boost of up to $1,000 from the 2021 contribution limit.
Special 457 plan catch-up contribution amount
The special 457 plan catch-up contribution amount also increased for 2022. Participants who are within three years of normal retirement age can contribute up to a maximum of $41,000 to their 457 plan in 2022 (up from $39,000 in 2021). The additional amount they may be able to contribute under the special 457 catch-up contribution will depend on the amount they were able to contribute in previous years but did not.
For participants who are age 50 or older during the 2022 calendar year and are in the 401(k) plan, the catch-up limit remains $6,500 for 2022. This makes their maximum possible 2022 contributions $27,000.
Please note: If participants are eligible for both the age 50+ catch-up and special 457 catch-up, they may not take advantage of both in the same calendar year.