2022 IRS Contribution Limits for Retirement Plans

Wondering how much you can put away for retirement next year? 

The IRS released updated contribution limits for 2022. Knowing the limits for different types of accounts can help you maximize your retirement savings AND save money on taxes.

Here are the new 2022 limits so you can stay on top of your contributions:

• 💲 401(k) and 403(b) Deferral Limit: Increases to $20,500 (additional catch up if you are over 50 stays flat at $6,500 in 2022).  

• 💲 IRA Limit (including Roth IRAs): Stays the course at $6,000 for 2022 with an additional $1,000 allowed if over 50.  

• 💲 SEP IRAs: The limit in 2021 was $58,000 in 2021 and increases to $61,000 in 2022 (with a cap of 25% of your net earnings).

• 💲 SIMPLE Retirement Accounts: increases to $14,000 (up from $13,500). Workers aged 50 or older can make additional contirbutions of $3,000.

• 💲 Defined Benefit Plan Maximum Annual Benefit – Increased limit to $245,000.

With some careful planning, you can make sure you maximize every dollar you're bringing home. Also, as usual, make sure to check with your tax professional for questions regarding your specific situation.

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