{"id":965,"date":"2021-12-31T09:45:00","date_gmt":"2021-12-31T17:45:00","guid":{"rendered":"https:\/\/www.aikapa.com\/Financial_Bites\/?p=965"},"modified":"2022-01-12T09:48:49","modified_gmt":"2022-01-12T17:48:49","slug":"2022-current-retirement-savings-limits","status":"publish","type":"post","link":"https:\/\/www.aikapa.com\/Financial_Bites\/?p=965","title":{"rendered":"2022: Current Retirement Savings Limits"},"content":{"rendered":"\n<p>In 2022, <strong><em>401K plan employee contribution maximums<\/em><\/strong> have increased by $1K to $20,500 and the catch-up (at age 50) remains at $6,500 (or a maximum of $27K). Total employer and employee contributions for 401K plans has increased to $61K. On the other hand, pension plan contributions are limited to $260K but the amounts are determined early in 2022. <strong><em>IRA contributions<\/em><\/strong> remain at $6K and for those over age 50 at $7K but tax deductibility is dependent on earnings and whether you\u2019ve contributed to a 401K\/403b plan. <strong><em>A Roth IRA contribution<\/em><\/strong> can be made instead of the IRA contribution, and it also has earning limits. <strong><em>Long-Term Capital Gain federal tax rates<\/em><\/strong> this year are still at 0%, 15%, and 20% dependent on taxable income levels but these are expected to increase in the new tax plan. <strong><em>Gifts<\/em><\/strong> can be made tax free to the recipient up to $16K in 2022 and for non-US citizen spouses this tax-free gift rises to $164K without additional paperwork. Keep in mind that these annual gifting exclusion limits are in addition to the currently huge lifetime tax-free gifting limit of $12.06M per person. The <strong><em>child tax credit<\/em><\/strong> and after-tax <strong><em>Roth conversion<\/em><\/strong> are part of the new tax plan under consideration.<\/p>\n\n\n\n<p>Edi Alvarez, CFP<sup>\u00ae<\/sup><br>BS, BEd, MS<\/p>\n\n\n\n<p><a href=\"http:\/\/www.aikapa.com\/\"><strong>www.aikapa.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2022, 401K plan employee contribution maximums have increased by $1K to $20,500 and the catch-up (at age 50) remains at $6,500 (or a maximum of $27K). Total employer and employee contributions for 401K plans has increased to $61K. On &hellip; <a href=\"https:\/\/www.aikapa.com\/Financial_Bites\/?p=965\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[152,393,248],"class_list":["post-965","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-401k-plan","tag-limits","tag-retirement-planning"],"_links":{"self":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=965"}],"version-history":[{"count":1,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/965\/revisions"}],"predecessor-version":[{"id":966,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/965\/revisions\/966"}],"wp:attachment":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}