2022 Limits for IRAs, 401(k)s, and More
On November 4, the Treasury Department released the 2022 adjusted figures for retirement account savings. Although these adjustments won’t bring any major changes, there are some minor elements to note.
401(k)s
The salary deferral amount for 401(k)s increases from $19,500 to $20,500, while the catch-up amount of $6,500 remains unchanged.
Individual Retirement Accounts (IRA)
The limit on annual contributions remains at $6,000 for 2022, and the catch-up contribution limit is also unchanged at $1,000.
Roth IRA
Roth IRA account holders will experience some slightly beneficial changes. In 2021, the Adjusted Gross Income (AGI) phase-out range will be $204,000 to $214,000 for couples filing jointly. This will be an increase from the 2020 range of $198,000 to $208,000. For those who file as single or as head of household, the income phase-out range has also increased. The new range for 2021 will be $129,000 to $144,000, up from the current range of $125,000 to $140,000.3
As we come to the end if the year, it is a good time to review your current retirement savings and look at increasing them in January. Contact us to further discuss how to maximize your retirement savings.