Issue link: https://info.seic.com/i/1460520
2022 IRA and retirement plan contribution limits: Individual retirement accounts IRA type Contribution limit Catch-up at 50+ Income limits Traditional nondeductible $6,000 $1,000 None Traditional deductible $6,000 $1,000 If covered by a plan: $109,000 - $129,000 joint $68,000 - $78,000 single, HOH 0 - $10,000 married filing separately. If one spouse is covered by a plan: $204,000 - $214,000 joint Roth $6,000 $1,000 $204,000 - $214,000 joint $129,000 - $144,000 single & HOH 0 - $10,000 married filing separately Roth conversion No income limit Source: Horsemouth: Key Financial Data 2022 Retirement plan contribution limits Annual compensation used to determine contribution for most plans $305,000 Defined-contribution plans, basic limit $61,000 Defined-benefit plans, basic limit $245,000 401(k), 403(b), 457(b), Roth 401(k) plans elective deferrals $20,500 Catch-up provision for individuals 50 and over, 401(k), 403(b), 457(b), Roth 401(k) plans $6,500 SIMPLE plans, elective deferral limit $14,000 SIMPLE plans, catch-up contribution for individuals 50 and over $3,000 What type of contribution should a taxpayer consider? • Traditional deductible - consider when in the 24% federal tax bracket or higher. • Roth – consider when in the 22% federal tax bracket or lower. • Traditional nondeductible – consider when one cannot do either of the above. As a reminder, the deadline for making 2021 IRA contributions is the tax filing due date, April 18, 2022. There is no extension beyond this date. If your clients have not already made 2021 contributions, now is the time to do so and to get a head start on 2022 contributions.