Retirement savers will be able to defer paying income tax on up to $6,000 in an individual retirement account in 2022. Workers with slightly higher incomes will also be eligible to save for retirement in traditional and Roth IRAs and qualify for the saver's tax credit.
IRA limits for 2022:
- The IRA contribution limit is $6,000.
- The IRA catch-up contribution limit will remain $1,000 for those age 50 and older.
- 401(k) participants with incomes below $78,000 ($129,000 for couples) are additionally eligible to make traditional IRA contributions.
- The Roth IRA income limit is $144,000 for individuals and $214,000 for couples.
- The saver's credit income limit is $34,000 for individuals and $68,000 for couples.
401(k) and 408 (b) Contribution Limits
For 2022, you may contribute $20,500 in a traditional 401(k). 50 or older may make an extra $6,500 as a "catch-up" contribution, for a total of $27,000.
Simple IRA Contribution Limits
For 2022, the annual contribution limit for SIMPLE IRAs is $14,000 . Workers age 50 or older may make additional catch-up contributions of $3,000, for a total of $17,000.
This information is provided as general guidance. Please consult your tax adviser for information related to your own personal circumstance.