Ringing in the New Year with New Rates
/The IRS and the Social Security Administration have announced the important numbers to know for 2022. Due to inflation, Social Security recipients will receive the largest cost-of-living increase seen in the last 40 years. Retirement savers with access to an employer-sponsored plan also received good news that contribution limits have increased for 2022. If you are contributing to an account with an increased limit, be sure to update your contribution rates for next year to take advantage of these changes.
In 2022, the maximum Modified Adjusted Gross Income (MAGI) for making Roth IRA contributions will increase to $214,000 for married couples filing jointly, with phase-out limits beginning at $204,000 MAGI. For single and head-of-household taxpayers, Roth IRA contribution limitations begin at $129,000 with total phase-out at $144,000.
