Know Your Limits

On October 21st the IRS released Notice 2022-55 which issued guidance regarding the cost-of-living adjustments affecting dollar limitations for various retirement plans. Below are some of the noteworthy changes. You can read the full notice here.

• 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 $22,500, up from $20,500.

• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $7,500, up from $6,500.

• The limit on annual contributions to an IRA increased to $6,500, up from $6,000.

• The IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000.

• The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.

• The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000.

Unsure how to best save for retirement, contact us to learn more.