IRS ANNOUNCES 2022 RETIREMENT CONTRIBUTION NUMBERS

The IRS has announced, in Notice 2021-61, the numbers for contributions to tax-deferred retirement savings accounts for 2022.

Here are the 2022 contribution limits -

 

·         IRA = 6,000

·         IRA Catch-Up Contributions at age 50 and older = 1,000

·         SIMPLE Plan = 14,000

·         SIMPLE Catch-Up Contributions at age 50 and older = 3,000

·         401(k), 403(b), 457, Thrift Savings Plan = 20,500

·         401(k), 403(b), 457, Thrift Savings Plan Catch-Up Contributions at age 50 and older = 6,500

·         Maximum Contribution to a SEP or Solo401(k) plan = 61,000

The Adjusted Gross Income (AGI) phase-out range for contributions to a traditional IRA by taxpayers who are active participants in an employer retirement plan for 2022 are -

 

·         68,000 - 78,000 = Single/Head of Household

·         109,000 - 129,000 = Married Filing Joint

·         0 - 10,000 = Married Filing Separate

The deduction on a joint return for a spouse that is not an active participant in an employer plan, but who is married to one who is, phases out at AGI of 204,000 to 214,000 for 2022.    

 

The AGI phase-out range for Roth IRA for 2022 is -

 

·         129,000 - 144,000 = Single/Head of Household

·         204,000 - 214,000 = Married Filing Joint 

·         0 - 10,000 = Married Filing Separate

You may be able to claim a Retirement Savings tax credit on contributions made to -

ü  a traditional or ROTH IRA,

ü  a 401(k), 403(b), government 457(b), SARSEP, SIMPLE, or Thrift Savings Plan

ü  an ABLE account for which you are the designated beneficiary.

The credit amounts and limitations for 2022 are -

CREDIT	JOINT	HEAD OF HOUSEHOLD	SINGLE/SEPARATE
50% of first $2,000	$0–$41,000	$0-$30,750	$0-$20,500
20% of first $2,000	$41,001 - $44,000	$30,751 - $33,000	$20,251 - $22,000
10% of first $2,000	$44,000 - $68,000	$33,001 - $51,000	$22,001 - $34,000

TTFN