IRS announces changes to retirement plans for 2022
November 19, 2021
IRS announced they will implement changes to retirement plans for 2022
The 2022 contribution limit for 401(k) plans will increase to $20,500.
Contributions to traditional and Roth IRAs will remain at $6,000.
If neither taxpayer nor their spouse is covered by a retirement plan at work, their FULL contribution to a traditional IRA is deductible.
If the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated – amount will depend on the taxpayer’s filing status and their income.
The amount individuals can contribute to SIMPLE retirement accounts increases to $14,000 in 2022.
