Benefits and Contribution Limits

The Internal Revenue Service sets the benefit and contribution limits for employer-sponsored retirement plans for each tax year. The following chart summarizes the 2022 limits and includes 2021 limits for comparison:

Full details about the 2022 pension limitations are available on the IRS website. A cost-of-living adjustments (COLA) table showing historical limits is also available.

457(b) Plans* (for tax-exempt co-op and governmental plans)

PLANS / DESCRIPTIONS20222021
Maximum amount of elective deferrals and employer contributions$20,500$19,500
Special catch-up contributions (allowed in the three years prior to normal retirement age)Lesser of:

2x the annual deferral limit; or

Annual deferral limit plus
the eligible amount not contributed in prior years
Lesser of:

2x the annual deferral limit; or

Annual deferral limit plus
the eligible amount not contributed in prior years
Age 50 and over catch-up contributions
(FOR GOVERNMENTAL PLANS ONLY)
$6,500
(only if not using special catch-up contribution option)
$6,500
(only if not using special catch-up contribution option)
*These typically include Executive Compensation 457(b) Plans, Global Executive Compensation Plans and Governmental Deferred Compensation 457(b) Plans. Co-ops and participants are encouraged to contact a tax adviser for more information.

Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.