{"id":9511,"date":"2021-11-11T08:40:55","date_gmt":"2021-11-11T13:40:55","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=9511"},"modified":"2021-11-11T08:46:43","modified_gmt":"2021-11-11T13:46:43","slug":"2022-irs-plan-contribution-and-benefit-limits","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/2022-irs-plan-contribution-and-benefit-limits\/","title":{"rendered":"2022 IRS Plan Contribution and Benefit Limits"},"content":{"rendered":"\n<div style=\"height:39px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"#the-announcement\">The Announcement<\/a><\/strong><\/li><li><strong><a href=\"#beyond\">401(k)s and Beyond<\/a><\/strong><\/li><li><strong><a href=\"#traditional-and-roth-iras\">Traditional and Roth IRAs<\/a><\/strong><\/li><li><strong><a href=\"#phase-out-ranges\">Phase-Out Ranges<\/a><\/strong><\/li><li><strong><a href=\"#further-increases\">Further Increases<\/a><\/strong><\/li><\/ul>\n\n\n\n<div style=\"height:39px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><\/p><p><strong>The Good, the Bad and the Not so Pretty<\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<div style=\"height:39px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2><strong><a id=\"the-announcement\"><\/a>The Announcement<\/strong><\/h2>\n<p>\u00a0<\/p>\n<p>The IRS has announced its annual retirement contribution and benefits limits for 2022, and it\u2019s a mostly positive picture for future retirees.<\/p>\n<p>\u00a0<\/p>\n<h2><strong><a id=\"beyond\"><\/a>401(k)s and Beyond<\/strong><\/h2>\n<p>\u00a0<\/p>\n<p>If you have a 401(k), 457 or 403(b), you are in luck (and that&#8217;s most of you!); the limit has been raised by $1000 to $20,500. Furthermore for workers with<u><a href=\"https:\/\/davisfunds.com\/document\/read\/simple_ira_savings_incentive_match_plan_for_employees#:~:text=A%20Savings%20Incentive%20Match%20Plan,%2C%20including%20self%2Demployed%20individuals.&amp;text=Employees%20can%20exclude%20the%20entire,deduction%20for%20all%20plan%20contributions.\"> SIMPLE<\/a><\/u> accounts, otherwise known as the savings incentive match plan for employees, their limits are now $14,000 up from $13,500.<\/p>\n<p>\u00a0<\/p>\n<h2><strong><a id=\"traditional-and-roth-iras\"><\/a>Traditional and Roth IRAs<\/strong><\/h2>\n<p>\u00a0<\/p>\n<p>Unfortunately for those with a<u><a href=\"https:\/\/www.schwab.com\/ira\/understand-iras\/roth-vs-trad-ira#:~:text=With%20a%20Roth%20IRA%2C%20you,current%20income%20after%20age%2059%C2%BD.\"> Roth or Traditional IRA<\/a><\/u>, who\u2019ve been patiently waiting for an increase since 2019, the limit remains at $6000. No change either to the over-50\u2019s IRA catch-up contributions.<\/p>\n<p>\u00a0<\/p>\n<h2><strong><a id=\"phase-out-ranges\"><\/a>Phase-Out Ranges<\/strong><\/h2>\n<p>\u00a0<\/p>\n<p>The announcement also includes new phase-out ranges for Traditional IRA contributors whose deductions are phased out as their income goes above a certain amount. The ranges are as follows:<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>$68,000 to $78,000<\/li>\n<li>$109,000 to $129,000<\/li>\n<li>$204,000 and $214,000<\/li>\n<\/ul>\n<p>A lot of these deductions depend on your marital status and if you\u2019re filing as a household. The one range that stays the same are employees who earn $10,000 or less. This is because, under <u><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/415\">section 415(d),<\/a><\/u> it is not subject to the annual cost of living adjustment.<a id=\"further-increases\"><\/a><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>Further Increases<\/strong><\/h2>\n<p>\u00a0<\/p>\n<p>There were other increases across the board. The limitations for \u2018highly compensated employees\u2019 are to go up by $5,000, to $135,000. In addition to this, the annual benefit to a DB or defined benefit plan will also be increased, to $245,000; up from $230,000.<\/p>\n<p>\u00a0<\/p>\n<p>To help your plan sponsors get the best for their employees, check out<u><a href=\"https:\/\/rixtrema.com\/landings_larkspurexecutive?source=blog11112021\" target=\"_blank\" rel=\"noopener\"> Larkspur Executive Pro<\/a><\/u>&#8211; a one stop shop for all your prospecting needs.<\/p>\n\n\n\n<div style=\"height:39px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><a href=\"https:\/\/rixtrema.com\/landings_larkspurexecutive?source=blog11112021\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"256\" src=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1.jpg\" alt=\"\" class=\"wp-image-7794\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1.jpg 700w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1-300x110.jpg 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1-500x183.jpg 500w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The IRS has announced its annual retirement contribution and benefits limits for 2022, and it\u2019s a mostly positive picture for future retirees.<\/p>\n","protected":false},"author":27,"featured_media":9512,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[168],"tags":[82,7,2273],"class_list":["post-9511","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-news","tag-401k","tag-financial-advisor","tag-irs-plan-contribution","post_format-post-format-image"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/11\/2022-IRS-Plan-Contribution-and-Benefit-Limits.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - 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