2022: Retirement Plan Contribution Limit Changes
At least one thing is moving in the right direction for investors; late last year the IRS announced an increase in the employee retirement plan contribution limits for 2022.
Although the 2022 traditional Individual Retirement Accounts (IRAs) remain at $6,000 (catch-up contribution for traditional IRAs stays at $1,000), workplace retirement accounts (i.e. 401(k), 403(b), amongst others), rises $1,000 to $20,500. Catch-up contributions remain unchanged at $6,500.
Investors’ ability to make a Roth IRA contribution has changed favorably as well, bumping up to $129,000 to $144,000 for single filers and heads of households, and $204,000 to $214,000 for those filing jointly as married couples.
In a blast from the past, SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), see a contribution limit increase from $13,500 to $14,000.
Overall, this is good news for most people still working and contributing to their employer retirement plans. The real trick now is, getting everyone to max them out!
Mark is a +24 year financial advisor veteran and Certified Financial Planner™. He founded Infinium in 2009 to bring a more personal, and truly client-centric offering to investors.