2022 Contribution Limits for 401(k)s, IRAs and More

by | Nov 11, 2021 | Insights, Retirement Planning, Tax Planning

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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