Tax Law and News IRS announces changes to retirement plans for 2022 Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Intuit Accountants Team Modified Dec 9, 2021 2 min read Next year, taxpayers can put an extra $1,000 into their 401(k) plans. The IRS recently announced that the 2022 contribution limit for 401(k) plans will increase to $20,500. The agency also announced cost‑of‑living adjustments that may affect pension plan and other retirement-related savings next year. Highlights of changes for 2022 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500. Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If neither the taxpayer nor their spouse is covered by a retirement plan at work, their full contribution to a traditional IRA is deductible. If the taxpayer or their spouse were covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated. The amount of the deduction depends on the taxpayer’s filing status and their income. 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. Saver’s Credit income phase-out ranges for 2022 are: $41,000 to $68,000 – Married, filing jointly. $30,750 to $51,000 – Head of household. $20,500 to $34,000 – Singles and married individuals filing separately. The amount individuals can contribute to SIMPLE retirement accounts also increases to $14,000 in 2022. For more information: Notice 2021-61 Roth IRAs Traditional IRAs Traditional and Roth IRAs — A comparison chart Publication 590-A, Contributions to Individual Retirement Arrangements COLA Increases for Dollar Limitations on Benefits and Contributions Previous Post Information please: Comprehensive set of tax year 2021 forms Next Post January 2022 tax and compliance deadlines Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team 3 responses to “IRS announces changes to retirement plans for 2022” If I inherit an IRA from a parent and I am under 60, will I be subject to a minimum Required distribution amount each year? Thank you Hi Bob – thank you for your question, but we cannot give out tax advice on the Tax Pro Center. Best thing to do is check with your accountant. Thanks. Thanks for this very important info. Browse Related Articles Practice Management Roth IRA and Roth 401(K) planning strategies Tax Law and News Retirement plans for businesses Tax Law and News Retirement Planning for a Small Business Doesn’t Have… Tax Law and News IRS annual inflation adjustments for tax years 2021 and… Tax Law and News IRS annual inflation adjustments for tax years 2020 and… Tax Law and News IRS Annual Inflation Adjustments for Tax Years 2019 and… Tax Law and News IRS Annual Inflation Adjustments for Tax Years 2018 and… Tax Law and News Tax Tips and Tricks Using IRAs Tax Law and News Annual inflation adjustments for TY 2022 and 2023 Tax Law and News New SECURE Act Expands Retirement Savings Opportunities
If I inherit an IRA from a parent and I am under 60, will I be subject to a minimum Required distribution amount each year? Thank you
Hi Bob – thank you for your question, but we cannot give out tax advice on the Tax Pro Center. Best thing to do is check with your accountant. Thanks.