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IRS Announces Increase in 2022 Retirement Account Contributions

IRS Announces Increase in 2022 Retirement Account Contributions

| November 05, 2021
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The IRS recently announced an increase in retirement account contributions, allowing savers to put away extra money in 2022. This announcement was made public in a release about cost-of-living adjustments for retirement plans next year. The contribution limit for workplace retirement accounts is being increased from $19,500 to $20,500, and includes 401(k)s, 403(b)s, & some 457 plans and thrift savings plans. Although retirement contributions are changing, catch-up contributions are staying the same; Savers aged 50 and older can contribute an additional $6,500, allowing their total contribution to now be $27,000.

The amount people can contribute to Individual Retirement Accounts (IRAs) is staying the same at $6,000 a year. The catch-up contribution amount for IRAs is not subject to an annual cost-of-living adjustment, and will stay at $1,000 allowing those aged 50 or older to contribute $7,000 next year. The Contribution limit for SIMPLE IRAs has also increased for 2022, jumping from $13,500 to $14,000. The catch-up contribution for those aged 50 and older remains unchanged at $3,000.

Income ranges to be eligible to contribute to ROTH IRAs are increasing in 2022. The new income phase outs are between $129,000 & $144,000 for singles and head of households (previously $125,000 to $140,000), and $204,000 to $214,000 for married couples filing jointly (previously $198,000 to $208,000).


If you'd like more information on the 2022 cost-of-living adjustments for retirement accounts, see the IRS Publication

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