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For 40 years, The Entrust Group has provided account administration services for self-directed retirement and tax-advantaged plans. Entrust can assist you in purchasing alternative investments with your retirement funds, and administer the buying and selling of assets that are typically unavailable through banks and brokerage firms.

Don’t Forget to Check the New 2022 IRS Income and Contribution Limits

Don’t Forget to Check the New 2022 IRS Income and Contribution Limits

Estimated reading time: 2 minutes

A new year means New Year’s resolutions, new investment opportunities, and new IRS limits.

Whether you choose a self-directed IRA (SDIRA) or any other self-directed account to invest for your future, make sure you make the most of your tax-advantaged accounts this year by keeping up-to-date with

  • Income Limits (your eligibility to contribute)
  • Contribution Limits (how much you can contribute) 

 

Traditional IRAs

For traditional IRAs, almost everyone can contribute, but the income limit determines if your contribution is tax-deductible. 

Traditional IRA Contribution Limits

  • Up to age 50: $6,000
  • Catch-up Contribution age 50+: $1,000
  • Total Contribution if Over the Age of 50: $7,000

Traditional IRA Modified Adjusted Gross Income Limits

  • Single Active Participant: $68,000 to $78,000
  • Married Active Participant, Filing Joint Tax Return: $109,000 to $129,000
  • Married Active Participant, Filing Separate Tax Returns: $0 to $10,000
  • Spouse of an Active Participant: $204,000 to $214,000

 

Roth IRAs

For Roth IRAs, only people with a modified adjusted gross income (MAGI) under the income limit are eligible to contribute. 

Roth IRA Contribution Limits

  • Up to age 50: $6,000
  • Catch-Up Contributions age 50+: $1,000
  • Total Contribution if over the age of 50: $7,000

Roth IRA Contribution Limits MAGI Phase-Out Ranges

  • Single Individuals: $129,000 to $144,000
  • Married, Filing a Joint Tax Return: $204,000 to $214,000
  • Married, Filing Separate Tax Returns: $0 to $10,000

Be aware that the limits for Roth and traditional IRAs are a combined limit for both accounts. And remember that catch-up contributions allow people over age 50 to contribute an additional amount each year. 

 

Other Self-Directed Accounts

In addition to traditional and Roth IRAs, every tax-advantaged account is subject to contribution limits.  

Simple IRA Contribution Limits

  • Employee Elective Deferrals: $14,000
  • Catch-Up Elective Deferral Contribution Age 50+: $3,000

SEP IRA Contribution Limits

  • SEP Employer Contribution Limits: Up to 25% of compensation (max of $61,000)

Individual 401(k) IRA Contribution Limits

  • Employer Contributions: Up to $61,000
  • Employee Elective Deferrals: Up to $20,500
  • Catch-Up Elective Deferral Contribution Age 50+: Up to $6,500

Health Savings Account Contribution Limits

  • Single Coverage: $3,650
  • Family Coverage: $7,300
  • Plus $1,000 catch-up contribution if you are age 55+

Educational Savings Account Contribution Limits

  • Per year per child: $2,000

 

As you plan your investment strategy for the year, consult Entrusts 2022 IRS Contribution Limits page to be sure you are making the most of your tax-advantaged accounts.

If you are considering starting the new year with a new tax-advantaged, self-directed account, learn about the account options available at Entrust.

With over 40 years of experience in retirement account services, our knowledgeable staff is ready to help you work toward your 2022 investing goals.  

 

Self-Directed IRAs:
The Basics Guide

Learn about your investment options, Self-Directed IRA rules, and much more!

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