Hey guys Tim Wolffe here, I'm going to do a quick video breaking down the 2022
contribution limits and income limits for accounts like the ira, 401k and hsa. If you
are new here please go ahead and SUBSCRIBE I post financial education videos helping you to learn
where you're at with your wealth, where you want to go and how to get there.
Alright let's get right into it, I'm going to list off a lot of numbers here if you want to
see just a straight up excel spreadsheet I will post that on my website you can check that out.
So for the ira you can contribute up to six thousand dollars in 2021 and for 2022 they're
gonna keep that at six thousand dollars. For the ira catch up (the "individual retirement account"
catch up) and remember this is for roth ira and traditional ira... if you're turning age 50
within the year 2022... so you're age 50 and older you can contribute $7,000 a year
in 2021 and they're keeping that the same for 2022. It's kind of unfortunate to see
no change to the ira contribution this year because inflation is through the roof: 4%-5%,
where normally it's only around 2%-2.5%. So as inflation rises it would be helpful if the
limit rose so we can contribute more money. But they do make up for in other areas we'll check
that out later. Also keep in mind for your ira if you want to file for 2021 you don't have to
do it by december 31st of 2021 you actually have until the federal tax deadline of april 15th
2022. So you can contribute to this year 2021 all the way up to april 15th of 2022. The roth ira
income limit for a single person last year was up to $125,000 dollars, this year they're raising it
to a $129,000 and if you're married last year was a $198,000 this year in 2022 they're raising it
to $204,000. So you can make up to that amount of money and you can still be eligible to contribute
to a roth ira. If you make over that amount of money you may want to consider doing a back door
roth ira where you contribute to a traditional ira and immediately roll it over to a roth ira because
you're not going to be eligible to do the full six thousand dollars into a roth ira because you make
too much money. And for your 401ks, 403bs, 457bs, and TSPs in 2021 it was $19,500 in 2022 they have
raised it to $20,500 that you can contribute. So we see a thousand dollar difference there
increase that we can contribute to our 401k. Again this is roth and traditional as well as the
catch up for the 401k, the 403b, TSP or 457b with $6,500 in 2021 they kept that the same at $6,500
in 2022. Just meaning that if you are turning age 50 or older in the year 2022 you can contribute up
to $27,000 into your 401k . Now the total that you can contribute to all defined compensation plans
has risen... It's gone from $58,000 last year to up to $61,000 so we see a $3,000 increase.
And what this means is if you do have a 401k and a 457b or you have a 401k at your company and a 403b
you can actually contribute to both of those accounts the total however cannot exceed $61,000
of your own money, that doesn't include your employer contributions. Just the employees
own contributions. And moving on to the HSA- the "health savings account" this is for all
qualified medical expenses. If you are a single individual it went up from thirty six hundred
dollars to $3,650 so we get an extra fifty dollars we can contribute there in 2022.
And for the hsa family plan you can go from $7,200 up to $7,300 dollars so we got a hundred dollar
increase in 2022 for the hsa family. And the hsa catch-up is not changing it's still one thousand
dollars in 2022 and you have to be turning age 55 or older and you'll be eligible to contribute an
extra thousand dollars into your hsa. And again just like the 401k this does not include employer
contributions it's your own contributions only. So if you do have a match in your hsa or your
employer puts a thousand dollars in you can still do the $3,650 or the $7,300. If you're a family
in the FSA- the "flexible spending account" in 2021 was $2,750 and it went up a hundred dollars
in 2022 you can contribute $2,850 dollars into an FSA. The contribution limits for a simple ira or
a simple 401k went up from $13,500 to $14,000. So we saw a $500 increase there in 2022. You can do
up to $14,000 now simple ira or simple 401ks. If you've never heard that before it's typically for
businesses that have fewer than 100 employees they offer those. And for the last one the SEP
IRA went up from $58,000 to now in 2022 you can contribute $61,000. So we saw a three thousand
dollar increase to the SEP IRA. A SEP IRA is a "simplified employee pension", this is typically
for people that are self-employed with you're the only employer maybe you have one or two employees.
And if you have a question about anything just go ahead and throw it in the comment section guys...
I'll be sure to answer it. If you have multiple questions or you just have no idea where to
start... Do I contribute to an IRA? Or a 401k first? Do I do both? Should I be contributing into
an HSA? And you're not really sure just sign up for a one-on-one session at timwolffe.com. There
are free 45-minute session for a limited time only because I just launched them so they're free
right now. At some point they're going to cost money so you might as well take advantage of it
while you can. I won't try to sell you anything or charge you anything the only thing I do ask is if
you got anything out of this video please go ahead and hit the LIKE button it helps out a lot so I
can keep making these videos!. Thanks for watching guys and I'll see you in next week's video!