You do not have complete equation:
(5V - Vf)/220 = R
Vf is the forward voltage of the LED, typically 2.5 to 3.5V.
So (5V - 2.5)/.02 = 125 ohm
LED data sheet will show max continuous current, if it doesn't than 20mA is usually a good number.
'328P datasheet Table in Section 29 discusses the current limits of the ports.More than 20mA is not guaranteed.
Although each I/O port can source more than the test conditions (20mA at VCC = 5V, 10mA at VCC = 3V) under steady state
conditions (non-transient), the following must be observed:
ATmega48A/PA/88A/PA/168A/PA/328/P:
1] The sum of all IOH, for ports C0 - C5, D0- D4, ADC7, RESET should not exceed 150mA.
2] The sum of all IOH, for ports B0 - B5, D5 - D7, ADC6, XTAL1, XTAL2 should not exceed 150mA.
If IIOH exceeds the test condition, VOH may exceed the related specification. Pins are not guaranteed to source current greater than the listed test condition.
Although each I/O port can sink more than the test conditions (20mA at VCC = 5V, 10mA at VCC = 3V) under steady state
conditions (non-transient), the following must be observed:
ATmega48A/PA/88A/PA/168A/PA/328/P:
1] The sum of all IOL, for ports C0 - C5, ADC7, ADC6 should not exceed 100mA.
2] The sum of all IOL, for ports B0 - B5, D5 - D7, XTAL1, XTAL2 should not exceed 100mA.
3] The sum of all IOL, for ports D0 - D4, RESET should not exceed 100mA.
If IOL exceeds the test condition, VOL may exceed the related specification. Pins are not guaranteed to sink current greater than the listed test condition.