Is it time to contribute more?
Preparing for retirement just got a little more financial wiggle room. Last week, the Internal Revenue Service announced new contribution limits for 2022.
Staying put for 2022 are traditional Individual Retirement Accounts, with the limit remaining at $6,000. The catch-up contribution for traditional IRAs remains $1,000 as well.
For workplace retirement accounts (i.e. 401(k), 403(b), among others), the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.
Eligibility for Roth IRA contributions has increased, as well. These have bumped up to $129,000 to $144,000 for single filers and heads of households, and $204,000 to $214,000 for those filing jointly as married couples.
Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which increases from $13,500 to $14,000.
If these increases apply to your retirement strategy, a financial professional may be able to help make some adjustments to your contributions.
This information should not be construed by any client or prospective client as the rendering of personalized investment advice. All investments and investment strategies have the potential for profit or loss, and there can be no assurance that the future performance of any specific investment or investment strategy including those discussed in this material will be profitable or equal any historical performance levels. Investment strategies such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Any target referenced is not a prediction or projection of actual investment results and there can be no assurance that any target will be achieved.
Stacy Bush is with Bush Wealth Management.
