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:

Plan20222021Change
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 EligibilityJoint, 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!