The IRS recently announced new contribution limits for retirement accounts for 2022, as follows:
Traditional IRAs the limit remaining at $6,000.
The catch-up contribution for traditional IRAs remains $1,000 as well.
401(k) & 403(b) pans the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.
Roth IRA income limits for contributions has increased.
Limits went from $129,000 to $144,000 for single filers and heads of households, and $204,000 to $214,000 for those filing jointly as married couples.
SIMPLE IRA Plan which increases from $13,500 to $14,000.
Required Minimum Distributions from Retirement Plans:
If you had hit age 70½ before 2020, RMDs kicked in at that point. If you reached (or will reach) that age in 2020 or later, you get more time: Those withdrawals are required to start at age 72.
If you turn 72 this year, you have until April 1, 2022, of course, to take your 2021 RMD. Be aware, however, that delaying it would not mean it can be subject to the updated IRS life expectancy tables that take effect next year. Your 2022 RMD would use the new measurements.
So there are two tables to use: the current table for the 2021 RMD and the new one for the 2022 RMD.
Speak to Charter Advisory to assist you with these new retirement plan rules.