2022 Cost of Living Adjustments for Qualified Retirement Plans
The Social Security Administration (SSA) and Internal Revenue Service (IRS) have announced the
government’s annual cost-of-living adjustments (COLA) for 2022:
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There was a notable 5.9% increase in Social Security and Supplemental Security Income benefits, which represents the largest benefits increase since 1982 (2008 comes in a close second with a 5.8% increase).
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The IRS adjustments consist of generally across-the-board increases, including the IRS annual compensation amounts and limits for elective deferrals. These and other increases reflect the current inflationary environment, in sharp contrast to 2021’s relatively flat adjustments. However, catch-up contribution limits for 2022 remain unchanged.
Refer to our alert for more details on the IRS and SSA amounts. To hear more discussion on current event impacts on retirement plans, subscribe to our all-things-EBP podcast series, BDO Talks ERISA.
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