As is the case every year, a New Year brings changes for retirement plan contributions and limits. Retirement plans, such as employer-sponsored plans and self-employed plans, can be affected.
Some years bring more changes than others. So what’s new for 2022?
Below are the 2022 limits for the most popular retirement plans, including 401(k)s and IRAs.
Employer-Sponsored Retirement Plan Limits
401(k) plans. For all employer-sponsored retirement plans — like 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan — the contribution limit for 2022 is $19,500.
401(k) catch-up. The catch-up contribution limit for employees ages 50 or older who participate in the above mentioned plans remains at $6,500 for 2022. Even if you don’t turn 50 until Dec. 31, 2018, you can make the additional $6,500 catch-up provision for the current year.
IRA plans. IRA (or Individual Retirement Account) contribution limits stayed the same from 2013 through 2018. The annual limit was $5,500, and many blame this on low-inflation problems. However, the limit increased to $6,000 in 2019 and remains the same for 2020. The catch-up provision for IRAs is unchanged at $1,000, because it is not subject to an annual cost-of-living adjustment. This makes the maximum IRA contribution for those 50 and older $7,000 for 2022.