Do you want your golden years to be golden years? Increase your retirement contributions — save now so you can play later.
The IRS has raised some contributions limits, so this may help you sock more away for your future. Here are some of the key figures:
The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Accounts (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2022.
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.
For additional details, see the following links:
These retirement options are open for self-employed and small business owners. The amount they can save in a SEP IRA or solo 401(k) increases to $61,000 in 2022, a $3,000 increase from 2021. The contribution amount may be limited by wage compensation or net earnings from self-employment.