Yesterday, the IRS released Notice 2021-61 which provides cost of living adjustments for retirement plans for 2022.
401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $1,000 to $20,500. The annual catch-up limitation for employees over age remains unchanged from 2021, at $6,500.
401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $1,000 to $20,500. The annual catch-up limitation for employees over age remains unchanged from 2021, at $6,500.
The annual limitation for SIMPLE retirement accounts increased $500 to $14,000.
Phase out ranges for contributing to IRAs have increased:
For single taxpayers covered by a workplace retirement plan the phase-out range is $68,000 to $78,000, an increase of $2,000.
The income phase-out range for Roth IRAs has also gone up:
Maximum contribution limits to traditional and Roth IRAs remains at $6,000 with catch-up contributions for individuals over age 50 of $1,000.
For more information see the Journal of Accountancy or IRS News Release 2021-216.
Contact your accountant with any questions and follow us on LinkedIn to stay up to date on all of our posts.
Phase out ranges for contributing to IRAs have increased:
For single taxpayers covered by a workplace retirement plan the phase-out range is $68,000 to $78,000, an increase of $2,000.
- For married couples filing jointly where the IRA contributor is covered by a workplace retirement plan the phase-out range is $109,000 to $129,000, an increase of $4,000.
The income phase-out range for Roth IRAs has also gone up:
- For single taxpayers and head of household the phase-out range is $129,000 to $144,000, up $4,000.
- For married couples filing jointly the phase-out range is $204,000 to $214,000, up $6,000.
Maximum contribution limits to traditional and Roth IRAs remains at $6,000 with catch-up contributions for individuals over age 50 of $1,000.
For more information see the Journal of Accountancy or IRS News Release 2021-216.
Contact your accountant with any questions and follow us on LinkedIn to stay up to date on all of our posts.
RSS Feed