Here’s what you need to know about 2022 retirement plan contribution limits to help make your annual investment game plan!
401(k)s. Employees can now defer up to $20,500, a $1,000 increase from last year and the maximum total addition from all sources increases to $61,000, up $3,000 from last year.. The $6,500 catch up contribution for investors over age 50 remains unchanged.
Traditional and Roth IRAs. Limits stay at $6,000 for Traditional and Roth IRAs or $7,000 if you are age 50 or older.
Roth IRAs Income Phase-Out. Your ability to contribute to a Roth IRA depends on your income. Married couples can make the full contribution if modified adjusted gross income (AGI) falls below $204,000, phasing out completely at $214,000. For single savers, the income range is $129,000 to $144,000. Will you make too much to contribute? Consider Backdoor Roth IRA contributions!
Solo 401(k)s & SEP IRAs. Limits for Solo 401(k)s and SEP IRAs increase to $61,000, a $3,000 increase from last year. To supercharge your Roth savings, consider a Mega Backdoor Roth Solo 401(k)!
SIMPLE IRAs. Limits for SIMPLE IRAs increase to $14,000 or $17,000 if you are age 50 or older.
Health Savings Accounts. HSA limits get a bump up to $3,650 for individuals and $7,300 for families covered under qualifying family plans. The catch up contribution for savers age 55 or older stays at $1,000. Want to learn how to make the most of your HSA? Read 3 Tips to Maximize Your HSA!
Questions? Don’t hesitate to reach out…we’re here to help!
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