Remove Excess Salary Deferrals by April 15, 2022
Internal Revenue Service (IRS) sent this bulletin at 02/04/2022 03:39 PM EST
|
|||
Useful LinksRetirement Plan & IRA Contribution Limits Small Employer Retirement Plans
Other IRS Resources |
Remove Excess Salary Deferrals by April 15, 2022 The total of all salary deferrals a participant makes to various retirement plans – including 401(k), 403(b), SARSEP and SIMPLE IRA plans – is limited to $19,500 (plus an additional $6,500 if age 50 or over) for 2021. If you exceed this limit for 2021, you must take corrective action to withdraw the excess deferral amount, plus earnings, by April 15, 2022. If you withdraw the excess salary deferrals, plus earnings, by April 15:
If you don’t withdraw the excess salary deferrals, plus earnings, by April 15:
Individuals who made salary deferral contributions to two or more retirement plans in 2021 may be most at risk for exceeding the deferral limit. The Interactive Tax Assistant can help you determine how to correct excess salary deferrals. Retirement Plans Video Series This IRS video series for small employers and self-employed individuals provides an overview of the key features of many different types of retirement plans. What you Should Know About Retirement Plans: This video series discusses the key features of the qualified retirement plans many small employers have adopted. What you Should Know About IRA-Based Plans: This video series discusses the key features of the IRA-based plans adopted by many small employers. Retirement Plans for Small Employers and Self-Employed: This recorded webinar, in English and Spanish, helps you compare the types of retirement plans available for your business or organization.
Find answers to many of your retirement plan or IRA questions at IRS.gov/Retirement. If you need help with an account-specific question, basic information about retirement plan forms or the status of pending applications, call our Customer Account Services at 877-829-5500. For the latest retirement plan news, connect via IRS Social Media and subscribe to this and other IRS newsletters. This message was distributed automatically from the mailing list Employee Plans News. Please do not reply to this message. |