The Internal Revenue Service (IRS) has announced that the amount individuals can contribute to their 401(k), 403(b), most 457 plans, and the Thrift Savings Plans have increased from $19,500 in 2021 to $20,500 in 2022.
The amount individuals can contribute to their SIMPLE retirement accounts has also increased from $13,500 in 2021 to $14,000 in 2022.
Per IRS Notice 2021-61, phase-out ranges have also increased in 2022.
Income ranges for determining workplace retirement eligibility in 2022
- For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to $68,000 to $78,000, up from $66,000 to $76,000.
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to $109,000 to $129,000, up from $105,000 to $125,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to $204,000 to $214,000, up from $198,000 to $208,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
Income ranges for taxpayers making contributions to a Roth IRA:
- For singles and heads of household is increased to $129,000 to $144,000 up from $125,000 to $140,000.
- For married couples filing jointly, the income phase-out range is increased to $204,000 to $214,000, up from $198,000 to $208,000.
- For a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
Income limits for the Saver’s Credit (also known as the Retirement Savings Contributions Credit):
- For married couples filing jointly is increased to $68,000, up from $66,000
- For heads of household is $51,000, up from $49,500
- For single and married individuals filing separately is $34,000, up from $33,000
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