The IRS makes adjustments based on increases in the cost of living as measured by inflation. Increases are typically released in October before the new year.

The Internal Revenue Service (IRS) has announced that contribution limits for 401(k)s, 403(b)s, most 457 plans, thrift savings plans (TSPs), and other qualified retirement plans will rise by $1,000 for 2022, going from $19,500 to $20,500, with an additional $6,500 if you are age 50 or older.

However, contribution limits for individual retirement accounts (IRAs), whether traditional or Roth, will remain the same at $6,000, with an additional catch-up contribution of $1,000 for those over age 50. In addition, the income qualifications for a Roth IRA and the requirements to have your contributions to a traditional IRA be tax deductible and to claim the saver’s credit have been raised for 2022.

Here's a summary of the contribution and limitation levels for 2022.