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IRS Increases 401(k) Limits

The Internal Revenue Service has increased the amounts individuals can contribute to their 401(k) retirement plans. The limit for each account has increased to $20,500 for 2022, up from $19,500 for 2021 and 2020, a 5.1-percent increase.

Those limits also apply to workers who participate in 403(b) paln, most 457 plans, and the federal government's Thrift Savings Plan. The IRS also announced phase-out ranges for those contributing to traditional Individual Retirement Amount plans for 2022. For single taxpayers covered by a workplace retirement plan, the phase-out range rises to $68,000 to $78,000, up from $66,000 to $76,000. With married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range goes from  $109,000 to $129,000, up from $105,000 to $125,000  For an IRA contributor not covered by a workplace retirement plan and who is married to someone who is covered, the phase-out range increases to $204,000 to $214,000, up from $198,000 to $208,000. For  married individuasl filing a separate return who are  covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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