Review Retirement Plan Contribution Limits
for 2022

Consider using tax-advantaged accounts to help lower your tax bill.

Even in the wake of complex tax provisions, a key to lowering your tax bill is really quite simple: report lower taxable income.

Since few of us actually want to earn less, the next option to consider is to stash as much income as you can into tax-advantaged accounts. If you haven’t contributed the maximum amount to a qualified retirement plan at work, consider adding money while you can.

• Contribution limits for 401(k) and other retirement plans for the 2022 tax year are $20,500 or $27,000 if you’re 50 or older (2021: $19,500 and $26,000).
• Consider making additional salary deferrals if you are eligible to participate in an employer supplemental employee retirement plan (SERP). This will enable you to further maximize contributions to reduce your taxable income now and defer more compensation into later years when your tax rate may be lower.
• You can accumulate funds on a tax-deferred basis to pay for healthcare expenses through a health savings account (HSA) or flexible savings account (FSA). Your workplace may offer one, both or neither of these options, so check with your employer. HSA contribution maximums in 2022 are $3,650 for self-only and $7,300 for families, with an additional $1,000 catch-up contribution allowed for individuals age 55 or older (2021: $3,600 and $7,200). The limit for individual health FSA contributions remains $2,750 (note that dependent care FSAs have a higher cap of $10,500); employer contributions do not count toward this maximum.
• Once you maximize employer retirement plans, consider contributing to an IRA (still a $6,000/year limit, or $7,000 if you’re 50 or over). Traditional IRA contributions are tax deductible if your modified adjusted gross income is under $78,000 for individuals (phase-outs begin at $68,000) or $129,000 for joint filers (phase-outs begin at $109,000). You must establish a new IRA account by April 15, 2023, for 2022 contributions, and you have until then to make 2022 contributions to an IRA.
• If you work for yourself, consider contributing to a solo 401(k) retirement plan, SEP IRA or SIMPLE plan.

Your financial advisor can help develop a retirement account contribution strategy that’s tailored to your unique situation.

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.

Raymond James Corporate
Privacy Notice │ BrokerCheck®

Financial Advisors offer securities through Raymond James Financial Services, Inc. Member FINRA/SIPC and securities are not insured by credit union insurance, the NCUA or any other government agency, are not deposits or obligations of the credit union, are not guaranteed by the credit union, and are subject to risks, including the possible loss of principal. First Tech Federal Credit Union and Addison Avenue Investment Services are not registered broker/dealers and are independent of Raymond James Financial Services. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.

Raymond James Financial Advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.