If you are still working, you should act now to increase your retirement contributions for 2022.
Contributing to your accounts can provide you with valuable tax deductions, cut your ultimate tax bill, and help stormproof your future retirement nest egg by providing a cushion for uncertain times.
The IRS just released the new contribution limits for next year, and most of them have gone up (see the accompanying chart below).
One caveat: Contribution amounts for your IRA or Roth IRA are the exception, in that they have not increased.
But contribution amounts for your 401(k), Solo 401(k), 403(b), Simple IRA, and SEP IRA are higher in 2022. To capture the full benefit of the increase, act now to adjust your contribution amounts higher for the entire 2022 calendar year. In most cases, that means talking to your employer about changing your payroll deduction amounts starting January 1, 2022.
Chart: Mari Adam
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