Preparing for retirement just got slightly more financial wiggle room. These are the new contribution limits announced by the Internal Revenue Service (IRS) for 2022.
For workplace retirement accounts (i.e. 401(k), 403(b), amongst others), the contribution limit rises $1,000 to $20,500, and catch-up contributions for those 50 and over remain at $6,500.1
Another increase was for contributions to SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which limit increases from $13,500 to $14,000.1
Income eligibility range to make Roth IRA contributions has increased as well. For single filers and heads of households the new range is $129,000 to $144,000, and for married couples filing jointly the new range is $204,000 to $214,000.1
But contributions to traditional Individual Retirement Accounts (IRAs) are staying the same in 2022, with the limit remaining at $6,000. The catch-up contribution for those 50 and over also remains the same at $1,000.1
If these increases apply to your retirement strategy or you have questions about making some adjustments to your contributions, let us know where can can help you. We welcome the opportunity!
1. CNBC.com, Friday, November 5, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
2022 Contribution Limits
December 22, 2021