In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses the 2022 401(k) and IRA contribution limits and how to best take advantage to save for retirement.
The New 2022 IRA and 401(k) Contribution Limits
Solo 401(k)
2021 Employee Deferrals Under Age 50: $19,500
2022: Employee Deferrals Under Age 50: $20,500
2021 Employee Deferrals Age 50+: $26,000
2022: Employee Deferrals Age 50+: $27,000
2021- Max Aggregate Contribution Amount (Employee Deferrals + Employer Contributions) Under Age 50: $58,000
2022 Max Aggregate Contribution Amount (Employee Deferrals + Employer Contributions) Under Age 50: $61,000
2021 Max Aggregate Contribution Amount (Employee Deferrals + Employer Contributions) Age 50+: $64,500
2022 Max Aggregate Contribution Amount Employee Deferrals + Employer Contributions) Age 50+: $67,500
Traditional IRA & Roth IRA
2021 & 2022 Contribution Limits Remain Unchanged:
Under Age 50: $6,000
Age 50 and Older: $7,000
SEP IRA
2021: $58,000
2022: 61,000
SIMPLE IRA
2021: $13,500
2022: $14,000
As you can tell from the numbers, limits are increasing for 2022. The biggest change is the amount you can contribute to a Solo 401(k). Regular 401(k) plans get a nice $1,000 boost as well.
Although the IRA contribution limit remains the same, you can contribute a little more to a SEP or SIMPLE IRA. Plus, you can earn a little more and make tax-deductible or Roth contributions.
The ability to save more for retirement is a nice bonus each year. Remember, you have until the end of the year to make employee contributions to a 401(k) plan. Plus, you have until the following April to contribute to an IRA or as the employer to a Solo 401(k) plan!
Thanks for listening, and be sure to check us out on SoundCloud!
