Zach DeBottis

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.

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