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January 7, 2022
News
Retirement Plan Contribution Limits & Other Tax Changes for 2022
Every year the IRS reviews a variety of retirement plan contribution limits and other important fiscal boundaries. Here’s a list of changes made effective January 1st, 2022.
| Item | 2021 | 2022 |
| 401(k) Employee Max | $19,500 | $20,500 |
| 401(k) Catch Up | $6,500 | $6,500 |
| 401(k) Total Max | $58,000 | $61,000 |
| HSA (Individual) | $3,600 | $3,650 |
| SIMPLE IRA | $13,500 | $14,000 |
| SIMPLE IRA Catch Up | $3,000 | $3,000 |
| Wages Taxed by Social Security | $142,800 | $147,000 |
| Traditional/Roth IRA Max | $6,000 | $6,000 |
| Traditional/Roth IRA Catch Up | $1,000 | $1,000 |
| Roth Income Limit Single | $125,000 | $129,000 |
| Roth Income Limit Joint | $198,000 | $204,000 |
| Standard Deduction Single | $12,550 | $12,950 |
| Standard Deduction Married | $25,100 | $25,900 |
| Standard Deduction Both Over 65 | $27,900 | $28,700 |
| Annual Gift Exclusion | $15,000 | $16,000 |
| Medicare Part B Premiums | $149 | $170 |
As you can see, some changes were more drastic than others. For example, the Medicare Part B premium rose by 14.5%, while other line items didn’t change at all, such as the contribution limits to Traditional/Roth IRA’s (still $6,000). All standard deductions increased slightly as did employer 401(k) and SIMPLE IRA contribution limits.
If you’re curious as to how these changes might impact your financial plan, please contact your Rockbridge advisor.
