B&J Bookkeeping loves help you make the most of your money by minimizing your tax burden. An IRA is great way to do this whether you are an individual, a business, or a professional. Below we will share everything you need to know on your 2022 IRA contributions.
1. 2022 Contribution Limits to 401 (k) Plans
The below are changes for the upcoming year.
- $20,500 is the new contribution limit.
- $6,500 is the new catch up contribution limit for taxpayers aged 50 or older.
- $305,000 is the new compensation limit.
- $61,000 is the new contribution limit for employers and employees.
- $34,000 is the new income limit for the saver’s credit for individuals.
- $68,000 is the new income limit for the saver’s credit for couples.
Please keep these these 401(k) rules in mind when planning, contributing, or making a major decision about your 2022 IRA plans.
You may read more on this on the official IRS site.
2. Exceptions to the Rule
The above figures do not correspond to rollover contributions. When rollovers occur you usually don’t pay taxes on it. You may face taxes when you withdraw funds from the new plan. Payments that are not rolled over may be taxable unless they are qualified Roth distributions or in other certain cases. There are also exceptions for those looking for or who have received Coronavirus related tax relief. We highly recommend you consult your bookkeeper to help you make the most of your IRA contributions for last year and next year.
2022 Ira Contributions in Houston
Finally, those who live in Houston and the surrounding areas should contact B&J Bookkeeping and Taxes to make sure you are getting the most out of your retirement dollars. You have to make sure you contribute the max when you can, do not deduct too soon, and consult a professional before you do anything. We proudly serve businesses, individuals, and professionals make the most of their investments.
