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Retirement Contribution Limits & Income Restrictions for 2022

Retirement Contribution Limits & Income Restrictions for 2022

Saving as much as possible for your future use, in any way possible, can be of great long-term value. The IRS changes to pension contribution limits make this possible for more people in 2022.

Summary of retirement contribution limits for 2022

First, the IRS has increased the maximum contribution to 401(k) plans and other plans that you can have through your employer. This means that your 401(k) can hold more money. IRA contribution limits have not increased, but you can still make good progress toward retirement.

If you are 50 or older, you can continue to invest more money in your employer's plan (if the plan allows) to help you reach your retirement goal. 


Contribution limit

Catch-up limit (if you're 50+)

Employer-sponsored plans:
401(k)403(b)457 plansthrift savings plan



Individual retirement account (IRA)



Roth IRA



Note: Some pension plans have a lower limit, so check your plan details.

Updates on tax deduction limits and income limits for IRA contributions

If you are already contributing to a retirement plan at work, such as a 401(k), you can also contribute to a traditional IRA. These are not subject to income limits but restrictions on what you can deduct from your taxes, depending on your income. For 2022, these revenue categories have increased.

If you save outside your workplace plan in a Roth IRA, income limits are a factor. But the good news is that they have increased for 2022.


How it works

Income limit

Tax deduction limit


Helps you invest for retirement with pre-tax deposits.


You may take full, partial, or no deduction based on your income level and retirement plan.

Roth IRA

Funded with after-tax dollars, but eventual qualified withdrawals may be tax-free.

Single/head of household: $129,000 for full contribution; $144,000 for a reduced contribution.
Married filing jointly: $204,000 for a full contribution; $214,000 for a reduced contribution.

Increasing the HSA contribution limit for 2022

If you've already exhausted 401(k) or other pension contributions, consider putting dollars before tax into a Health Savings Account (HSA) if you have one. A HSA helps people with high-deductible health plans save tax on money spent on medical bills not covered by the plan.

Unlike a flexible spending account (FSA), which has a "use it or lose it" clause, the activities you contribute to an HSA are yours in the long run and can be renewed annually. In addition, an HSA gives you a threefold tax advantage: the money you deposit is non-taxable and tax-free, and you are not taxed when you withdraw money to pay eligible medical bills.

Taking advantage of the increased contribution limits of HSA 2022 can help you pay your pension bills.

Coverage type

2022 HSA limit

Self coverage


Family coverage


Additional contributions: Dollar cost averaging vs. Lump Sum

If you want to save more for retirement, you can increase your contributions in two ways:

Lump Sum: Deposit to an existing account or open a new account with a single amount. For example, suppose you receive a tax refund and enter it into an IRA; it is a lump sum contribution.

Dollar cost averaging: Adds the same amount to an existing or new account at regular intervals, usually monthly. If you receive an increase and automatically increase your pension savings by 1% of that amount each month, this is called the average cost in dollars or DCA. If your salary increases by 3%, taking 1% or 2% of it and putting it into your retirement plan is money you probably won't lose.

Is it one of the best options? Actually, no; trying to time the market is less important than time in the market. 

Tip: If your employer makes a matching contribution in his or her 401(k) plan, try to set aside enough to match that contribution. The company you work for can help grow your money, and that free money can flow from them to you.



Pat Raskob
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