HR & Payroll News

IRS Increases 2022 Contribution Limits

The Internal Revenue Service has increased the maximum dollar amount you may contribute in 2022 to tax-deferred savings plans, such as the Commonwealth of Virginia 457 Deferred Compensation Plan and the Hybrid 457 Deferred Compensation Plan.

  • The annual deferral limit for 457 plans for participants younger than age 50 has increased to $20,500, compared to $19,500 in 2021.
  • The pre-retirement Standard Catch-Up limit has also increased to $20,500, for a total of $41,000.
  • The Age 50+ Catch-Up limit remains unchanged at $6,500.

The annual limit includes any voluntary contributions made to the Hybrid 457 Deferred Compensation Plan, if eligible, and any other supplemental 457 plans. Any Roth after-tax or pre-tax contributions made to the Commonwealth of Virginia 457 Deferred Compensation Plan also count toward the limit.

You cannot use the Age 50+ Catch-Up and the Standard Catch-Up in the same calendar year. For more information on the Age 50+ Catch-Up, Standard Catch-Up, military leave make-up, one-time deferrals or investment options, visit the Contributions section of the Commonwealth of Virginia 457 Deferred Compensation Plan website.