2022 Retirement Account Changes

Thus far in 2022, there are just a few changes which impact IRA’s and 401K’s.  There could be additional changes later in the year of course.

For 401K/403B:

• The maximum employee contribution has been increased from $19,500 to $20,500. The catch-up contribution for employees age 50 and over has been increased from $26,000 to $27,000.

For Traditional IRA’s:

• No change to the contribution levels but the income deductibility level has been increased. We will review with you individually as needed.

For ROTH IRA’s:

• No change to contribution levels – still lower of earned income or $6000 for each spouse. Catch-up contribution of additional $1000 for age 50 and over.

• Contribution eligibility has increased:

  • Full contribution with Adjusted Gross Income (AGI) less than $129,000 for a single taxpayer. Phase-out between $129,000 and $143,999. We can help with the phase-out math.

  • Full contribution for each with total Adjusted Gross Income (AGI) less than $204,000 for married/filing jointly taxpayers. Phase-out between $204,000 and $213,999. We can help with the phase-out math.

• 2021 contributions can be made until April 15, 2022. Remember to use a deposit slip that we will provide to ensure that contribution is applied to 2021.

Call with questions or if we can help get these changes made for you.