Retirement Plan Contribution Limit Increases For 2022
The IRS recently announced that beginning in 2022, taxpayers will be allowed to contribute an additional $1,000 into their 401(k), 403(b) and most 457 plans. The 2022 contribution limit for these retirement plans will increase from the current level of $19,500 to $20,500.
Employee catch-up contributions (age 50 or older by year-end) will remain the same for 2022 - $6,500. Plan participants must make catch-up contributions to a retirement plan via elective deferrals. Catch-up contributions must be made before the end of the plan year.
The limits for IRA contributions and IRA catch-up contributions remain unchanged.
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Disclosures:
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.