Retirement accounts are a vital component of a family’s retirement plan. You have your employer provided accounts like the 401k, 403b, a 457 plan or the federal Thrift Savings Plan (TSP). Alternatively, if your employer does not provide a plan for you then you could look at an Individual Retirement Account (IRA) or the Roth option. Each account has a maximum contribution limit that the IRS sets per year. There is a ‘bonus’ catch-up limit for those that are age 50 and older. The catch-up contributions can begin in the year that you turn 50. For some years these limits may change and others it may remain the same. Let’s take a look at the upcoming changes for the previously mentioned account types. 

401k/403b/457 Plans

• Currently set at $19,500, the 2022 elective deferral limit will increase to $20,500

• The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), and most 457 plans will remain the same at $6,500.

Traditional & Roth IRA’s

• The contribution limit and the catch-up contribution remains unchanged at $6,000 and $1000 respectively.

By: Lafayette Huston

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.