Retirement Contribution Limits Projected to Increase in 2022

| September 26, 2021
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Before the IRS publishes the official numbers for 2022 retirement contributions, analysts are projecting increases due to higher inflation numbers.

The 401K, 403b, TSP, 457 elective deferral (currently $19,500) is expected to increase by two $500 increments rather than the more typical $500 to $20,500 next year. The catch up of $6500 is expected to stay the same. This means workers 50 and over can contribute up to $27,000 next year.

If you have a 457 and a 401K, you can contribute to the maximum in both plans, doubling your tax deduction.

SEP-IRA contribution for self employed individuals has increased by $3000 to $61,000 in 2022 (subject to limits as a percentage of your net income).

SIMPLE IRA contribution limits increased from $13,500 to $14,000 for 2022, with a 50 and over catch up remaining the same at $3000.

Keep in mind - these are projections.

The IRS has finalized limits to Health Savings Accounts for 2022 to be $3650 for self only and $7300 for those with family coverage. These are increases of $50 and $100 respectively. Individuals 55 and over can add $1000 to these numbers.

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