Blog

In Case You Blinked

In the blink of an eye

In Case You Blinked

In case you blinked, 2021 is almost over and 2022 is less than a month away.

If you are planning on maximizing your retirement plan contributions again next year or for the first time, there are some cost of living increases that will go in effect. Be sure to increase your contribution level accordingly.

  • 401(k) and 403(b) plans have increased from $19,500 of annual deferrals to $20,500, with an age 50+ catch up remaining unchanged at $6,500. The total plan limit has increased to from $58,000 to $61,000, not including the $50+ catch up.
  • 457(b) plan limits also increased to $20,500.
  • SEP IRA contributions increased from $58,000 to $61,000, subject to 25% compensation.
  • SIMPLE IRA plan deferrals have increased from $13,500 to $14,000, with the age 55+ catch up contribution remaining the same. If you happen to have a somewhat rare SIMPLE 401(k) plan, this limit applies as well.
  • Health Savings Account contributions have increased to $3,650 from $3,600 for those with individual health coverage. Likewise, the limit for those with family health coverage has increased from $7,100 to $7,200.  The age 55+ catch up remains $1,000.
  • Flexible Spending Accounts s increased from $2,750 to $2,850.
  • While employer sponsored plan contribution limits have increased, the aggregate limit to Traditional IRA and Roth IRAs remains at $6,000, with a $1,000 age 50+ catch up.
  • Though IRA contribution limits have remained static, there are increased phase outs.
    • The Roth eligibility phase out limits will be $129,000-$144,000 for single filers and $204,000-$214,000 if married filing jointly.
    • The deductibility traditional IRA contributions will phase out from $68,000-$78,000 for single filers and $129,000-$144,000 if married filing jointly.
 

 

Thanks for checking out the blog. 

Schuyler Engelhardt , CFP®

 


This material is for general information only and is not intended to provide specific advice or recommendations for any
individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive
outcomes. Investing involves risks including possible loss of principal.   Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and
broker-dealer (member FINRA/SIPC). 
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL Financial affiliate, please note LPL Financial makes no representation with respect to such entity.

 

Securities and insurance offered through LPL or its affiliates are:

 

Share This Article

Facebook
Twitter
LinkedIn

You May Also Like

A/D Juicebox Hello Spring: Planting Seeds for Future Wealth! – April 9th

W​​​​​​​e are happy to present our A/D JuiceBox Webinar Series. JuiceBox will provide current events, financial planning strategies, taxes, investments, and general business updates.

We have a special guest, Margo Steinlage from Steinlage Insurance Agency, who will join us to discuss Medicare.

Join us as Autumn fills the air, and the time is quiet and mellow to discuss things in the financial planning world.

Read More »

Tax Planning for Annuities

Favorable tax treatment is one of the main reasons for buying an annuity. But what exactly are the tax benefits? And are there any drawbacks? It’s important to know the answers to these questions before deciding whether to purchase an annuity.

Read More »

Private Foundations

Private foundations are tax-exempt entities, just like hospitals or universities. What makes them different from organizations that are known as public charities is that private foundations are set up, funded, and controlled by a single individual, family, or corporation. By contrast, public charities derive a significant percentage of their revenue from the general public and cannot be under the control of any one individual or family.

Read More »

Tax Benefits of Home Ownership

Home improvements and repairs are generally nondeductible. Improvements, though, can increase the tax basis of your home (which in turn can lower your tax bite when you sell your home). Improvements add value to your home, prolong its life, or adapt it to a new use.

Read More »

Choosing an Income Tax Filing Status

Selecting a filing status is one of the first decisions you’ll make when you fill out your federal income tax return, so it’s important to know the rules. And because you may have more than one option, you need to know the advantages and disadvantages of each. Making the right decision about your filing status can save money and prevent problems with the IRS down the road.

Read More »

Taxation of Investments

It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments and how are they taxed?

Read More »

Don't Miss Anything

Stay up to date with our monthly newsletter.