Important planning tips for 2022: The IRS has announced higher maximum contributions for retirement savings, but only to 401Ks not IRAs. The overall limit goes up $3,000 from $58,000 to $61,000. Meanwhile the limit on IRA contributions stays the same as it has been for four years: $6,000 per year with a $1,000 per year catchup allowance if you are 50 or older. However, you can earn a little more this year and still deduct IRA contributions. To the extent you can afford it, it’s always smart to save the maximum amounts. It’s especially important if you are young and have several years of growth before retirement.
Have Questions? Please Reach Out Today!