Jordan and Chuck discuss planning items for the upcoming year. We review updated retirement contribution levels and different planning strategies you can implement to save on taxes.
2022 401(k) contribution limits are:
Workers who are younger than age 50 can contribute a maximum of $20,500 to a 401(k) in 2022. That's up $1,000 from the limit of $19,500 in 2021. If you're age 50 and older, you can add an extra $6,500 per year in "catch-up" contributions, bringing your total 401(k) contributions for 2022 to $27,000.
Traditional IRA income phase-out ranges for 2022 are:
$68,000 to $78,000 - Single taxpayers covered by a workplace retirement plan
$109,000 to $129,000 - Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
$204,000 to $214,000 - A taxpayer not covered by a workplace retirement plan married to someone who's covered.
$0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan
Roth IRA contributions income phase-out ranges for 2022 are:
$129,000 to $144,000 - Single taxpayers and heads of household
$204,000 to $214,000- Married, filing jointly
$0 to $10,000 - Married, filing separately