The IRS has recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the tax year 2022. Here are the highlights:
Highlights of Changes for 2022
The annual compensation limit under Code Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $290,000 to $305,000.
The limitation for defined contribution (DC) plans under Section 415(c)(1)(A) (annual additions) has been increased for 2022 to $61,000 from $58,000.
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $68,000 for married couples filing jointly, up from $66,000; $51,000 for heads of household, up from $49,500; and $34,000 for singles and married individuals filing separately, up from $33,000.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.
Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.
This information is not intended to be a substitute for specific individualized tax advice. Tax services are not offered by Strategic Retirement Partners, Global Retirement Partners, LPL Financial or affiliated advisors.