The Internal Revenue Service (IRS) is looking ahead to 2022, having recently released cost of living adjustments (COLA) for tax brackets and IRA contributions, with some limits seeing substantial increases compared to the last few years.
Not all limits have gone up, however. Investors who contribute the annual maximums to IRAs will be interested to know the contribution limit to either a Traditional or Roth IRA, or both in combination, for the 2022 tax year will remain $6,000, plus up to an additional $1,000 catch-up contribution for a total of $7,000 for those over age 50, assuming there is eligible earned income.1 These limits have remained unchanged since 2019.2
While contribution limits have not changed, income limits for Traditional IRA deductibility and Roth contribution eligibility did. Here’s a snapshot of some of the COLA updates for 2022.Read More