As we approach the end of the calendar year, we want to remind you of the guidelines for contributing to your retirement account(s) for 2022.
The guidelines tend to change subtly year-to-year, so please review this information if you are intending to contribute to any of your retirement accounts for this year. Typically, you are eligible to contribute to your retirement account for 2022 at any time during 2022, and also through April 15th, 2023.
We strongly encourage you to review your income and tax status with your Certified Public Accountant (CPA) for accuracy as it relates to your eligibility and ideal contribution amounts.
Traditional IRA:
- Check your eligibility here
- Max contribution: $6,000
- Additional catch-up contribution (for those age 50 and older): $1,000
Roth IRA:
- Check your eligibility here
- Max contribution: $6,000
*TOTAL contributions between Traditional and Roth IRAs is capped at $6,000 combined ($7,000 for ages 50+)
Workplace Retirement Accounts (401(k), 403(b)):
- Max contribution: $20,500
- Additional catch-up contribution (for those age 50 and older): $6,500
SIMPLE IRA:
- Eligibility: All employees who received at least $5,000 in compensation from the employer during any 2 preceding calendar years (whether or not consecutive) and who are reasonably expected to receive at least $5,000 in compensation during the calendar year, are eligible to participate in the SIMPLE IRA plan for the calendar year.
- Max contribution: $14,000
SEP IRA:
- Eligibility:
- Has reached age 21
- Has worked for employer in at least 3 of the last 5 years
- received at least $650 in compensation in 2022
- Contributions are made by the employer
- Max contribution is the lesser of:
- 25% of the employee’s compensation, or
- $61,000
- Salary deferrals and catch-up contributions are not permitted in SEP plans
If you do not have any retirement plan in place, reach out today for help in setting one up!
