2022 Contribution LimitsSubmitted by Kaizen Financial Advisors, LLC on December 3rd, 2021
Preparing for retirement just got a little more financial wiggle room. The Internal Revenue Service (IRS) announced new contribution limits for 2022.
- For workplace retirement accounts (i.e. 401(k), 403(b), Thrift Savings Plan and most 457 plans), the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.1,2
- Eligibility for Roth IRA contributions has increased, as well. These have bumped 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.1
- Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which increases from $13,500 to $14,000.1
- Staying put for 2022 are traditional Individual Retirement Accounts (IRAs), with the limit remaining at $6,000. The catch-up contribution for traditional IRAs remains $1,000 as well.1
If you have questions about your contributions for 2022, reach out to your Kaizen Advisor.