IRS Update on 403(b) and 457(b) Deferred Compensation Plans – Retirement Resource

A snapshot of what has change, and not changed, with your employees’ 2022 contribution limits.

What’s changed: In 2022, the maximum contribution limit for employees who participate in 403(b) and 457 plans increased from $19,500 to $20,500. This means that anyone who has not reached age 50, or will be turning 50 during the 2022 calendar year, can contribute $20,500

What’s not changed: Employee catch-up contribution maximums remain at $6,500.

New limits

Plan Type	Normal Limit	Age 50 “Catch-Up”
403(b)	$ 20,500.00	$ 6,500.00
457(b)	$ 20,500.00	$ 6,500.00
IRA	$ 6,000.00	$ 1,000.00

For a full rundown of changes, read this article “IRS Announces 2022 Contribution, Benefit Limits” published by NTSA on November 4, 2021.

2022 Contribution Limits - In-depth

The companies of National Life Group® and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.

TC124544(1221)1

Teresa Thomas

As a 25-year veteran of the financial services industry, Teresa has worn many hats including corporate communication, product and concept marketing, meeting and convention planning, training and mentoring. All while also balancing being a daughter, sister, mom, friend and colleague. It’s true, in her first semester of graduate school, she dropped out of her Secondary Education curriculum – recognizing that teachers have a magnificent gift (that she did not). So, she took her love of teaching in a different direction and thoroughly enjoys the opportunity she has to educate you on not just the importance of retirement savings, but also the many ways in which you can plan now to achieve your retirement success! A native of Philadelphia, she is learning to wear a new hat in “Cowboy Country” as a newly-minted resident of Dallas, TX where she spends most of her time corralling her two boys, two cats, a dog and several fish TC124597(1221)3

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Products issued by: National Life Insurance Company Life Insurance Company of the Southwest

National Life Group® is a trade name of National Life Insurance Company, founded in Montpelier, VT in 1848, Life Insurance Company of the Southwest, Addison, TX, chartered in 1955, and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York. Fixed indexed annuities (FIAs) are issued by Life Insurance Company of the Southwest.

Annuities have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the annuity. Guaranteed lifetime income may be provided either by annuitizing an annuity, or through an annuity income rider. Riders are supplemental benefits that can be added to an annuity. Riders may be optional, may require additional premium and may not be available in all states or on all products. This is not a solicitation of any specific annuity. Guarantees are dependent on the claims paying ability of the issuing company. Fixed indexed annuities do not directly participate in any stock or equity investments.

TC130142(1222)P | Cat No 105902(0521)

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