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IRS Boosts 401(k) Contribution Annual Cap to $20,500
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WASHINGTON—Workers will be able to set aside up to $20,500 in their 401(k) accounts in 2022, up $1,000 from this year, the Internal Revenue Service said Thursday.
The change is part of the tax code’s annual inflation adjustments and doesn’t require Congress to act. The benefits will go to the small fraction of higher-income people who are able to max out their 401(k) contributions, setting aside more than $20,000 from their current incomes.
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