08 Nov 2022 Retirement Plan Contribution Limits
The IRS announced new 2022 contribution limits for qualified retirement plans.
401(k) and other retirement plans will see an increase. However, the IRA limit for 2022 remains unchanged.
See how much you can contribution in 2022 to your retirement plans.
2022 Contribution Limits for 401(k)s
Employee contribution limits for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan have increased from $19,500 to $20,500 for 2022.
For those age 50 and older, the 401(k) catch-up contribution remains the same at $6,500 for 2022.
If you turn 50 anytime during December of 2021, you’re still eligible to contribute the additional $6,500.
After-Tax 401(k) Contributions
If you are self-employed or your employer allows for after-tax contributions, the overall defined contribution plan limit will increase to $61,000 – up from $58,000 in 2021.
The $61,000 is a cap of the maximum $20,500 contribution limit deferral, plus employer contributions.
If you have a Solo 401(k), otherwise known as a Self-Employed 401(k) or Individual 401(k), the contribution limits will increase to from $58,000 to $61,000 in 2022.
The compensation limit has also risen to $305,000 in 2022, up from $290,000 in 2021.
2022 IRA Retirement Plan Contribution Limits
Individual retirement accounts will not see an increase in contribution limits for 2022.
Traditional and Roth IRA contribution limits will stay the same for 2022, with a $6,000 maximum contribution limit.
The catch-up contribution for people age 50 and over remains the same additional $1,000.
Don’t forget can contribute the maximum for 2021 until April 15, 2022.
If you have an IRA, plan now to maximize the contribution limit for 2021 before April 15, 2022.
While the contributions have stayed flat since 2019, there are changes to the Deductible IRA Phaseouts and to Roth IRA Phaseouts.
Deductible IRA Phaseouts for 2022
For singles and heads of household who are covered by a workplace retirement plan, such as a 401(k), and contribute to a traditional IRA, the phaseout range is between $68,000 and $78,000, up from $66,000 and $76,000 in 2021.
For 2022, the adjusted gross income (AGI) phaseout range for married couples filing jointly who are contributing to a traditional IRA is between $109,000 and $129,000 for 2022, up from $105,000 and $125,000 in 2021.
If you contribute to an IRA but are not covered by a workplace retirement plan, and are married to someone who is, the deduction is phased out if your joint income is between $204,000 and $214,000 in 2022.
This is up from $198,000 and $208,000 in 2021.
Roth IRA Phaseouts for 2022
The phaseout range for married couples filing jointly who are covered by a workplace retirement plan and contribute to a Roth IRA in 2022 will increase.
For 2022, it will be between $204,000 and $214,000, up from $198,000 and $208,000 in 2021.
For heads of household or those filing as single, the phaseout range is between $129,000 and $144,000 in 2022, up from $125,000 and $140,000 in 2021.
Remember, you can still contribute to an IRA even if you earn too much — it’s just nondeductible.
Contribution limits for SIMPLE retirement plans will increase from $13,500 to $14,000 in 2022. However, the catch-up limit remains the same at $3,000.
Contribution limits for SEPs, or Simplified Employee Pensions, have increased to $61,000 in 2022, up from $58,000. The compensation limit has also gone up from $290,000 in 2021 to $305,000 in 2022.
Additional Quaified Retirement Plan Limits
Saver’s Credit (also known as the Retirement Savings Contributions Credit) contribution limit increased to $68,000 for married couples filing jointly – up from $66,000 in 2021.
For heads of the household, the limit has increased from $49,500 to $51,000 in 2022. For singles and married couples filing separately, the limit is $34,000, up $1,000 from 2021.
Defined Benefit Plans
The limit on the annual contribution of a defined benefit plan increases from $230,000 to $245,000 in 2022.