You could spend a few decades in retirement.
So, to pay for all those years, you’ll probably need to take full advantage of your IRA and 401(k).
And in 2022, you may have expanded opportunities to do just that.
To begin with, the annual contribution limit for 401(k) plans is now $20,500 – up $1,000 from 2021.
If you’re 50 or older, you can put in an extra $6,500, for a total of $27,000.
Also, the income range has increased for making deductible contributions to a traditional IRA. And the income range for making Roth IRA contributions has also increased.
You’ll want to consult with your tax advisor to determine how these new limits might affect you.
When you’re saving for retirement, any new opportunities, of whatever size, can be valuable.
So, review your options to determine how you can help yourself build the resources you’ll need to enjoy life as a retiree.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
