The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500. The maximum contribution from employee deferrals plus employer contributions is $61,000.
An over age 49 catch-up amount is unchanged at $6,500.
The maximum contribution is $61,000.
The amount individuals can contribute to SIMPLE retirement accounts also increases to $14,000 in 2022.
The over age 49 catch up remains at $3,000.
2022 Retirement Plan Contribution Updates
Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000.
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If neither the taxpayer nor their spouse is covered by a retirement plan at work, their full contribution to a traditional IRA is deductible. If the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated. The amount of the deduction depends on the taxpayer’s filing status and income.
Traditional IRA income phase-out ranges for 2022 are:
$68,000 to $78,000 – Single taxpayers covered by a workplace retirement plan
$109,000 to $129,000 – Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
$204,000 to $214,000 – A taxpayer not covered by a workplace retirement plan married to someone who’s covered.
$0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan
Roth IRA contributions income phase-out ranges for 2022 are:
$129,000 to $144,000 – Single taxpayers and heads of household
$204,000 to $214,000- Married, filing jointly
$0 to $10,000 – Married, filing separately
Saver’s Credit income phase-out ranges for 2022 are:
$41,000 to $68,000 – Married, filing jointly.
$30,750 to $51,000 – Head of household.
$20,500 to $34,000 – Singles and married individuals filing separately.