Wealth Strategy Insights
Wealth Strategy: Contribution Limits Increase in 2022
For 2022, the IRS has increased the contribution limits into 401(k) and 403(b) plans to $20,500, up from $19,500. If you are older than 50 years old, the catch-up contribution remains unchanged at $6,500, bringing the employee contribution amount to $27,000. These new contribution limits also apply to most 457 and Thrift Savings Plans.
If you have an employer matching contribution or profit-sharing contribution, the total of all employee and employer contributions have increased to $61,000 from $58,000. For those over the age of 50, the contribution limit is $67,500 due to the catch-up provision.
Other contribution limits for 2022 are:
- 457(b) limits will increase to $20,500 from $19,500.
- Traditional IRA and Roth IRA contribution limits will remain unchanged at $6,000. $7,000 if you are 50 or older.
- SEP IRA contribution limits will increase to $61,000, up from $58,000.
- SIMPLE IRA and SIMPLE 401(k) contribution limits will increase to $14,000 from $13,500.
- 2022 Health Savings Account (HSA) contribution limits will increase to $3,650 from $3,600 for single individuals. Family limits will increase to $7,300 from $7,200.