2022 IRA Limits as adjusted for Inflation

On October 15, 2022, the IRS announced the 2022 IRA limits.

The rate of inflation for the fiscal year ending September 30, 2021, has been substantially larger (5.4%) than it had been in many of the preceding years. Consequently, various IRA limits will be increasing more than has been the case in the prior years. These 2022 IRA limits are set forth on pages two and three.

The IRA contribution limits of $6,000 (under age 50) and $7,000 (age 50 or older) which applied for years 2018-2021 will also apply for 2022.

The income limits applying to making a deductible contribution are also increasing as are the Roth IRA eligibility limits. More individuals who are active participants will be eligible to claim a tax deduction for their traditional IRA contribution and more individuals will be eligible to make a Roth IRA contribution.

The limits for SEP-IRAs, and SIMPLE-IRAs plans are also increasing. The maximum SEP-IRA limit will be $61,000 up from $58,000. The deferral limits for SIMPLE-IRAs will be $14,000 (under age 50) and $17,000 (age 50 or older) up from $13,500 (under age 50) and $16,500 (age 50 or older).

Contribution limits for a person who is not age 50 or older.

Tax Year	Amount
2008-12	$5,000
2013-18	$5,500
2019-22	$6,000

Contribution Limits for a person who is age 50 or older.

Tax Year	Amount
2008-12	$6,000
2013-18	$6,500
2019-22	$7,000

The deferral limits for 401(k) participants will be $20,500 (if under age 50) and $27,000 (if age 50 or older) up from $19,500 (under age 50) and $26,000 (age 50 or older).

Too many Americans are not making IRA contributions which they are eligible to make. Less than 20% of those eligible make one of the four types of IRA contributions. There are still many individuals who do not participate in a 401(k) plan. Those individuals who participate in a 401(k) are also eligible to make an IRA contribution.

We suggest an IRA custodian/trustee inform your existing IRA accountholders of these changes and your prospective new customers. One should not assume the general public is aware of these changes.