IRS Announces 2022 Limits for Defined Contribution Plans

The Internal Revenue Service (IRS) has announced the yearly contribution limits for 403(b) and 457(b) plans in 2022 will increase from $19,500 to $20,500 for each plan.

There is no change to the age 50 Catch-up Provision, which allows any participant who is at least 50 years of age at any point during the calendar year to contribute an additional $6,500 to each plan. If you are an employee who will be at least 50 years of age in 2022, you may contribute a total of $27,000 to each plan starting in 2022.

You can change your contribution at any time by logging onto the Fidelity website or by calling Fidelity at 1-800-343-0860.

Are you saving with a 403(b) or 457(b) plan yet?

Defined contribution plans allow you to save for retirement with pretax dollars, which reduces the taxes you pay on your current income. You do not pay taxes on that income or on your investment earnings until you withdraw the money. Once you choose how much to contribute, your contributions are taken directly from your pay and deposited into your retirement savings plan account.

Learn more about 403(b) and 457(b) plans and how to start saving for retirement on the Fidelity website or by calling Fidelity at 1-800-343-0860.