Ubiquity Retirement + Savings Logo

Simply Sponsor Resources Category: 1. General Information

Plan Sponsor’s Important Activities

Gunter Johannes / 15 Mar 2022

See important actions and reminders to ensure proper plan administration.

Trustee and Sponsor Roles

Gunter Johannes / 15 Mar 2022

Learn what’s required of plan sponsors and trustees to help designate the appropriate people for those important roles.

Plan Sponsor Dashboard Overview video

Gunter Johannes / 14 Mar 2022

Get a quick tour of the Dashboard view of your account.

Getting Help

Gunter Johannes / 13 Mar 2022

See contact information and hours for plan implementation support, ongoing plan administration, employee (Saver) support, and others.

Annual Contribution Limits

Gunter Johannes / 11 Mar 2022

See the 2022 contribution limits for 401(k) plans, highly compensated employees, and more.

The IRS is increasing the maximum individual 401(k) contribution limit by $1,000 – from $19,500 to $20,500 in 2022. The Safe Harbor 401(k) contribution limit for 2022 is the same as a Traditional 401(k), even though Safe Harbor plans are exempt from most nondiscrimination testing. The 2022 catch-up contribution limit for Traditional and Safe Harbor plan participants who are age 50 or older remains the same at $6,500.

Continue reading to learn how Safe Harbor contribution limit changes for 2022 can affect how much you are able to put into tax-deferred savings this year. The amount you contribute is pre-tax, meaning that it can also reduce your taxable income, tax bracket, and the percentage of taxes you owe for 2022.

Contact Ubiquity, a leading provider of Safe Harbor 401(k) plans for small businesses, for details. It’s not too late to start a Safe Harbor 401(k) plan or add a Safe Harbor provision to an existing plan for 2022.

How much will you pay for 401(k)? Get an instant quote.

How many employees do you have?
I am a sole proprietor
(just me/or my business partner/spouse)

2022 Employer 401(k) Safe Harbor Limits

The $20,500 limit applies to individual 401(k) contributions. Employers offering Safe Harbor 401(k)s are required to make contributions to all eligible employees’ plans. Safe Harbor match can range from 3.5% to 6% if you have auto enrollment, and 4% – 6% if you do not have auto enrollment. A plan with or without auto enrollment can elect a 3% Safe Harbor non-elective contribution. If you have auto enrollment, you can elect to vest at two years, whereas without it, the Safe Harbor would be vested at 100%.

  • For 2022, employers can add $40,500 onto the $20,500 individual limit.
  • The total combined contribution limit is $61,000 for people under 50 or $67,500 for people over 50.

2022 Income Threshold for Determining Employer Contributions

Highly-paid employees are restricted in their ability to make 401(k) contributions. Plan compensation limit has increased to $305,000 in 2022 – this is up from the $290,000 2021 401(k) Safe Harbor contribution limit. For example, a company plan matching 4% of an employee’s salary would not match 4% on employees earning $1 million. Instead, the employer would pay the employee 4% of the $305,000 maximum cap.

2022 Definition of Highly Compensated Employees

If you haven’t set up a 401(k) Safe Harbor plan for 2022 yet, you may consider doing it soon if you’ve failed nondiscrimination tests in the past or if you have a lot of “highly compensated” or “key” employees.

  • Highly Compensated Employees: In 2022, a highly compensated employee is someone who earned more than $130,000 or who owned more than 5% of the business in 2021 (family attribution rules apply). If the average employee puts 4% of their income into the retirement savings plan, a highly compensated employee generally cannot contribute more than 6% of their income.
  • Key Employees: Officers earning salaries of more than $200,000, more than 5% owners (family attribution rules apply), or more than 1% owner earning more than $150,000 in 2022.

2022 Safe Harbor Deadline

Business owners concerned with maxing out their retirements, compensating highly paid and key employees well, and passing the IRS non-discrimination testing may add a Safe Harbor amendment to their plans.

  • The deadline to amend an existing plan to add Safe Harbor match was December 1, 2021 for 2022
  • The deadline to adopt a new Safe Harbor 401(k) plan with matching in 2022 is October 1, 2022
  • The deadline to adopt a new Safe Harbor 401(k) plan with nonelective contributions is December 2, 2022

Call Ubiquity to get started on setting up a Safe Harbor 401(k) plan or to add a Safe Harbor provision to your existing plan. We take care of small businesses with the industry’s most affordable 401(k) plans at low, flat, monthly rates with no AUM or per-person fees.


Every year, the Internal Revenue Service increases employer 401(k) contribution limits to adjust for inflation. It’s important for small business owners and solopreneurs to stay informed of these changes from year to year to remain in compliance and maximize future investments.

How Are 401(k) Employer Contribution Limits Different in 2022?

Employer 401(k) plan contributions face the following rules in 2022:

  • The maximum employee elective deferral increased by $1,000 to $20,500
  • For those age 50 and older, catch up contributions remain the same at $6,500
  • The employee/employer maximum limit increased $3,000 from $58,000 to $61,000 for those under age 50
  • The employee/employer maximum limit increased $3,000 from $64,500 to $67,500 for those age 50 and older
  • The employee compensation limit for calculating contributions increased $15K from $290K to $305K
  • The Key Employee compensation limit for nondiscrimination increased $15K from $185K to $200K
  • The Highly Compensated Employee limit for testing increased $5K from $130K to $135K
  • The maximum SIMPLE 401(k) contribution limit increased $1,000 from $13,500 to $14,500

What’s Notable About Changes to 2022 401(k) Plans?

Typically, the IRS allows a $500 increase in the maximum employee 401(k) deferral and a $1,000 combined employer/employee contribution every one or two years, but higher than normal inflation (5.9%) in recent months has driven these allowances much higher.

The IRS has announced changes to the tax bracket thresholds or standard deductions, and depending on which bracket you fall into, you may want to increase your 401(k) contributions to lower your taxable income for the year.

Other Important Considerations Concerning 401(k) Employer Contribution Limits for 2022

A change in company match limits for 2022 may be of particular concern to you:

  • If you are both employer and employee – you may have the option to contribute to the maximum 2022 limit of $61,000 (or $67,500 if you are age 50+) if you are an entrepreneur, freelancer, or independent contractor with a Solo 401(k)
  • If you are matching employee contributions – you must follow a set formula and also comply with the maximum IRS limits. This year, your matching formulas apply up to $305,000 worth of employee income, which is $15,000 over 2021 – a considerably higher amount

Ubiquity Helps Small Businesses Manage Affordable 401(k) Plans

Ubiquity offers the industry’s most affordable small business 401(k) plans with a low, flat monthly rate that allows your company to grow without worry of increasing administrative costs. When you work with us, you are free to choose your own broker.

We offer everything from traditional and Roth 401k plans to SIMPLE and Safe Harbor 401(k) plans. Contact a 401(k) plan administrator to stay current with the latest employer contribution limit changes year to year and maximize your personal wealth.

How much will you pay for 401(k)? Get an instant quote.

How many employees do you have?
I am a sole proprietor
(just me/or my business partner/spouse)

Read Ubiquity’s 3 Steps to Building Financial Security in an Economic Downturn

Read Now
Read the Definitive Guide to Small Business 401(k)
Download Your 401(k) Guide Now

© 2022 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Facebook Twitter LinkedIn YouTube

© 2022 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Credit Card Logos
Show Exit Modal