Plan Your Retirement Savings Goals for 2022
There’s good news for your retirement accounts in 2022! The IRS recently announced that you can contribute more pre-tax money to several retirement plans in 2022. Take a look at the following contribution limits for several of the more popular retirement plans:
| Plan | 2022 | 2021 | Change | |
| SIMPLE IRA |
Annual Contribution 50 or over catch-up |
$14,000 Add $3,000 |
$13,500 Add $3,000 |
+ $500 No Change |
| 401(k), 403(b), 457 and SARSEP |
Annual Contribution 50 or over catch-up |
$20,500 Add $6,500 |
$19,500 Add $6,500 |
+ $1,000 No Change |
| Traditional IRA |
Annual Contribution 50 or over catch-up |
$6,000 Add $1,000 |
$6,000 Add $1,000 |
No Change No Change |
| AGI Deduction Phaseouts: | Single; Head of Household Joint nonparticipating spouse Joint participating spouse Married Filing Separately (any spouse participating) |
68,000 – 78,000 204,000 – 214,000 109,000 – 129,000 0 – 10,000 |
66,000 – 76,000 198,000 – 208,000 105,000 – 125,000 0 – 10,000 |
+ $2,000 + $6,000 + $4,000 No Change |
| Roth IRA |
Annual Contribution 50 or over catch-up |
$6,000 Add $1,000 |
$6,000 Add $1,000 |
No Change No Change |
| Contribution Eligibility |
Single; Head of Household Married Filing Jointly Married Filing Separately |
129,000 – 144,000 204,000 – 206,000 0 – 10,000 |
125,000 – 140,000 198,000 – 208,000 0 – 10,000 |
+ $4,000 + $6,000 No Change |
| Rollover to Roth Eligibility | Joint, Single, or Head of Household Married Filing Separately |
No AGI Limit Allowed / No AGI Limit |
No AGI Limit Allowed / No AGI Limit |
No AGI Limit Allowed / No AGI Limit |
What You Can Do
- Look for your retirement savings plan from the table and note the annual savings limit of the plan. If you are 50 years or older, add the catch-up amount to your potential savings total.
- Then make adjustments to your employer provided retirement savings plan as soon as possible in 2022 to adjust your contribution amount.
- Double check to ensure you are taking full advantage of any employee matching contributions into your account.
- Use this time to review and re-balance your investment choices as appropriate for your situation.
- Set up new accounts for a spouse and/or dependents. Enable them to take advantage of the higher limits, too.
- Consider IRAs. Many employees maintain employer-provided plans without realizing they could also establish a traditional or Roth IRA. Use this time to review your situation and see if these additional accounts might benefit you or someone else in your family.
- Review contributions to other tax-advantaged plans, including flexible spending accounts (FSAs) and health savings accounts (HSAs).
Now is a great time to make 2022 a year to remember for retirement savings!