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2022 Contribution Limits

November 19, 2021
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Preparing for retirement just got a little more financial wiggle room. This
week, the Internal Revenue Service (IRS) announced new contribution
limits for 2022.


Staying put for 2022 are traditional Individual Retirement Accounts (IRAs),
with the limit remaining at $6,000. The catch-up contribution for traditional
IRAs remains $1,000 as well.1


For workplace retirement accounts (i.e. 401(k), 403(b), amongst others),
the contribution limit rises $1,000 to $20,500. Catch-up contributions
remain at $6,500.1


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.1


Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for
Savings Incentive Match Plan for Employees), which increases from
$13,500 to $14,000.1


If these increases apply to your retirement strategy, you may want to
make some adjustments to your contributions. Where I can be of any
help, I welcome the opportunity.


1. CNBC.com, Friday, November 5, 2021


Once you reach age 72, you must begin taking required minimum distributions from a
Traditional Individual Retirement Account (IRA) or Savings Incentive Match Plan for
Employees IRA in most circumstances. Withdrawals from Traditional IRAs are taxed as
ordinary income and, if taken before age 59½, may be subject to a 10% federal
income tax penalty.
Once you reach age 72, you must begin taking required minimum distributions from
your 401(k), 403(b), or other defined-contribution plans in most circumstances.
Withdrawals from your 401(k) or other defined-contribution plans are taxed as
ordinary income and, if taken before age 59½, may be subject to a 10% federal
income tax penalty.
To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA
distributions must meet a five-year holding requirement and occur after age 59½. Taxfree and penalty-free withdrawal can also be taken under certain other
circumstances, such as the owner's death. The original Roth IRA owner is not
required to take minimum annual withdrawals.
The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult
legal or tax professionals for specific information regarding your individual situation.
This material was developed and produced by FMG Suite to provide information on a
topic that may be of interest. FMG Suite, LLC, is not affiliated with the named
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