On November 24, 2021

2022 contribution limits increase

By Kevin Theissen

Preparing for retirement just got a little boost. This week, the Internal Revenue Service (IRS) announced new contribution limits for 2022.

Staying put for 2022 are traditional Individual Retirement Accounts (IRAs), with the limit remaining at $6,000. The additional catch-up contribution for traditional IRAs also remains at $1,000 for people aged 50 and over.

For workplace retirement accounts, for example 401(k), 403(b) and others, the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.

Eligibility for Roth IRA contributions has increased, as well. These have bumped up to $129,000 and $144,000 for single filers and heads of households, respectively, from $204,000 to $214,000 for those filing jointly as married couples. So, if you make less than these limits, you are able to contribute to a Roth IRA. If you earn more than these limits you are not able to contribute.

Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which increases from $13,500 to $14,000.

If these increases apply to your retirement strategy, you may want to make some adjustments to your contributions. You should also review your holdings at least once a year — and know what you own and why.

Kevin Theissen is the owner of HWC Financial in Ludlow.

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

Moving sticks and rocks

May 22, 2024
By Merisa Sherman Then the tough choice of how to play today:ski, bike, paddle, fish, hike, run?  The bug went down my throat. Literally, flew down my throat and landed in the back at such speed that I had no choice but to just swallow. Mmmmm, gotta love that extra protein that Vermont provides during…

What are the chances?

May 22, 2024
Vesna Vulovic is a name etched in the annals of miraculous survival — perhaps the most unlikely survival story of all time. She was thrust into the spotlight on Jan. 26, 1972, when she unwittingly became a symbol of human resilience.  A native of Belgrade, Yugoslavia, Vesna’s journey to that fateful day began like that…

The Outside Story: Jesup’s milk-vetch: A rare beauty

May 22, 2024
A few ledges along the Connecticut River are home to a rare plant commonly known as Jesup’s milk-vetch (Astragalus robbinsii var. jesupii). In fact, this species, which has been listed as federally endangered since 1987, only grows at six sites along a 16-mile stretch of the river in New Hampshire and Vermont. But conservationists are working…

Boys, brothers, dad, Vermont

May 22, 2024
Building a Killington Dream Lodge: part 14 By Marguerite Jill Dye Dad made progress and forged ahead on our Killington ski lodge while Mom, Billie, and I toured Europe. Our extensive European whirlwind trip was the very beginning of my awakening to understand the world and how I fit in. I had no idea what…