2022 Retirement Plan Limits and Tax Brackets

2022 Retirement Contribution Limits

 401(k) or 403(b) Plans

 The elective deferral contribution limit for employees increases to $20,500 from $19,500 in 2021.

 The Catch-Up contribution limit for those 50 and older remains at $6,500.

 The limit on total annual contributions to all of a participant’s accounts--including elective deferrals, employee contributions, employer matching and discretionary contributions--  increases by $3,000 to $61,000 (or 100% of their income whichever is less). The limit is $67,500 if you are at least 50.

 The amount of compensation that can be taken into account when determining employer and employee contributions increases, from $290,000 to $305,000.

 IRAs

 Maximum Contribution limit stays at $6,000.

 Catch-Up Contribution amount remains at $1,000.

 If you are covered by a workplace retirement plan, the deduction for making a traditional IRA contribution begins to phase out for single taxpayers at a modified adjusted gross income (MAGI) of $68,000 and for married couples, $109,000. Both increased from last year.

 If you are married to someone who is covered by a retirement plan, you can still make an IRA contribution. The deduction for that contribution is phased out if the couple’s MAGI is between $204,000 and $214,000.  

 Nondeductible traditional IRA contributions may be made by anyone regardless of income.

 Roth IRAs

 Maximum Contribution limit stays at $6,000.

Catch-Up Contribution amount remains at $1,000.

To be eligible to make at least some Roth contributions your MAGI must be less than $214,000 if married filing jointly or $144,000 if you are a single filer, both up from last year.

MAGI is your Adjusted Gross Income with certain deductions added back. Some of those deductions include student loan interest, IRA contributions, passive income or losses. Contact your tax professional for more information on calculating MAGI.

2022 Tax Brackets