2022 Taxable Wage Base Announced
On October 13, 2021, the Social Security Administration announced the 2022 adjustments for benefits and certain other limitations that are subject to annual cost-of-living adjustments (COLAs). One of these includes the Social Security taxable wage base (TWB), which identifies the maximum amount of an individual’s annual earnings that are subject to withholding for Social Security-administered benefits. The TWB is sometimes also used in retirement plan contribution allocations that use so-called “integrated” formulas, providing additional retirement plan benefits on income above the TWB, income for which the recipient will not receive Social Security benefits. For 2022, the TWB will rise from $142,800 to $147,000.
