The IRS has announced that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020. The IRS also issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2022.
Congress passed the “Setting Every Community Up for Retirement Enhancement” (SECURE) Act of 2019 as part of a comprehensive appropriations measure. The new law, which represents a major overhaul of the rules for retirement plans and IRAs, is generally effective on January 1, 2020. Following are several key provisions in the SECURE Act.