Tingnan Ngayon ang 5 Mga Pagbabago sa IRS sa 2022 na makakaapekto sa iyong mga retirement account
Tingnan Ngayon ang 5 Mga Pagbabago sa IRS sa 2022 na makakaapekto sa iyong mga retirement account
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U.S. tax code can be confusing, especially when you consider the constant changes that seem to happen every year. In 2022, a new set of rules could affect your efforts to build a larger reserve to get through your retirement years.

Here are some key changes to consider when saving for retirement this year.

1. The maximum superannuation contribution is now higher

Many employers offer employees a retirement plan, usually a 401(k), 403(b) or 457 plan. The maximum amount you can invest in these plans is $20,500 through 2022, an increase of $1,000 from the previous year.

If you don’t realize this change, you may not be able to save as much as possible for retirement. Talk to your human resources department to make sure you are making the most of your account. If not, consider increasing the amount you contribute to reach the full $20,500 cap.

Pro tip: If you can’t make the maximum contribution to your program, at least try to make enough to make the full company match your employer offers. Don’t forget to check out these wealth-building tips beyond 40.

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2. Regular IRA deduction areas are higher

Many deductions and credits provided by the IRS will be phased out. This means that once your income exceeds a certain threshold, the value of the deduction or credit to which you are entitled will slowly decrease until it disappears entirely.

In 2022, the phase-out rules for deductions from traditional IRA contributions have changed. For single savers with corporate pension plans, the 2022 cut-out range is $68,000 to $78,000. Married couples filing with a spouse who has a corporate pension plan and is contributing to an IRA can range from $109,000 to $129,000.

Typically, taxpayers can deduct the full $6,000 they are allowed to contribute to a traditional IRA in 2022, but the scope of these phase-outs could change the amount for some people. Visit the IRS website for more information, and remember to consider these ranges before deciding how much to contribute to a traditional IRA this year.

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3. Roth IRA contributions have higher fading range

If your income is higher, you may not be able to fully contribute to your Roth IRA. Fortunately, 2022 Roth IRAs run out of contributions with higher margins. The run-out range is $125,000 to $140,000 for single savers and $204,000 to $214,000 for married couples filing together.

So if your income is in these ranges, you can only contribute less of your retirement savings to your Roth IRA than the $6,000 that other taxpayers are allowed to contribute. Once your income exceeds the above amounts, you will no longer be eligible to contribute to a Roth IRA in 2022.

4. You can make a higher HSA contribution

Technically, a health savings account is not a retirement plan. Instead, here’s where savers of all ages can bring in tax-deferred savings that can be withdrawn tax-free to pay for medical bills.

However, many people use these accounts to save as much money as possible so they have enough money to pay for medical bills in retirement.

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The good news is that contribution limits for HSA plans have increased in 2022. This year, if you only have health insurance, you can contribute an extra $50 (for a total of $3,650). If you have home insurance, you can contribute an additional $100, bringing the total to $7,300.

Remember, in order to contribute to the HSA, you must have a high-deductible health plan.

5. You can make a higher contribution to your SIMPLE IRA

SIMPLE IRA (short for Employee Savings Incentive Matching Plan) is a retirement plan commonly used by small businesses with fewer than 100 employees. Employees can contribute to these plans and accumulate retirement savings. Employers must also contribute to employee accounts.

Many small businesses use a simple IRA because it costs less to maintain than a traditional retirement plan. The amount you can contribute to a SIMPLE IRA in 2022 is $14,000, up from $13,500 in 2021.

Bottom line

The IRS rules are always changing, and you need to keep an eye on the winds of those changes to avoid financial stress in retirement. If you’re not sure how the 2022 rules might be different, talk to your accountant.

Keeping abreast of these changes can help ensure you’re complying with IRS rules, making the most of your savings, and supplementing your Social Security.

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