{"id":24510,"date":"2021-12-22T08:00:01","date_gmt":"2021-12-22T14:00:01","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=24510"},"modified":"2021-12-09T13:41:18","modified_gmt":"2021-12-09T19:41:18","slug":"irs-announces-changes-to-retirement-plans-for-2022","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/irs-announces-changes-to-retirement-plans-for-2022\/","title":{"rendered":"IRS announces changes to retirement plans for 2022"},"content":{"rendered":"

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\u2011of\u2011living adjustments that may affect pension plan and other retirement-related savings next year.<\/p>\n

Highlights of changes for 2022<\/h2>\n

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.<\/p>\n

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<\/a> 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.<\/p>\n

Traditional IRA income phase-out ranges for 2022 are:<\/b><\/p>\n