Retirement Contribution Limits Projected to Increase in 2022

September 26, 2021

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.