2022 Contribution Limit 401k, TSP, Roth IRA, HSA, FSA, Simple IRA/401k, SEP IRA - YouTube

Hey guys Tim Wolffe here, I'm going to  do a quick video breaking down the 2022  

contribution limits and income limits for  accounts like the ira, 401k and hsa. If you  

are new here please go ahead and SUBSCRIBE I post  financial education videos helping you to learn  

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Alright let's get right into it, I'm going to  list off a lot of numbers here if you want to  

see just a straight up excel spreadsheet I will  post that on my website you can check that out.  

So for the ira you can contribute up to six  thousand dollars in 2021 and for 2022 they're  

gonna keep that at six thousand dollars. For the  ira catch up (the "individual retirement account"  

catch up) and remember this is for roth ira  and traditional ira... if you're turning age 50  

within the year 2022... so you're age 50  and older you can contribute $7,000 a year  

in 2021 and they're keeping that the same  for 2022. It's kind of unfortunate to see  

no change to the ira contribution this year  because inflation is through the roof: 4%-5%,  

where normally it's only around 2%-2.5%. So  as inflation rises it would be helpful if the  

limit rose so we can contribute more money. But  they do make up for in other areas we'll check  

that out later. Also keep in mind for your ira  if you want to file for 2021 you don't have to  

do it by december 31st of 2021 you actually have  until the federal tax deadline of april 15th  

2022. So you can contribute to this year 2021 all  the way up to april 15th of 2022. The roth ira  

income limit for a single person last year was up  to $125,000 dollars, this year they're raising it  

to a $129,000 and if you're married last year was  a $198,000 this year in 2022 they're raising it  

to $204,000. So you can make up to that amount of  money and you can still be eligible to contribute  

to a roth ira. If you make over that amount of  money you may want to consider doing a back door  

roth ira where you contribute to a traditional ira  and immediately roll it over to a roth ira because  

you're not going to be eligible to do the full six  thousand dollars into a roth ira because you make  

too much money. And for your 401ks, 403bs, 457bs,  and TSPs in 2021 it was $19,500 in 2022 they have  

raised it to $20,500 that you can contribute.  So we see a thousand dollar difference there  

increase that we can contribute to our 401k.  Again this is roth and traditional as well as the  

catch up for the 401k, the 403b, TSP or 457b with  $6,500 in 2021 they kept that the same at $6,500  

in 2022. Just meaning that if you are turning age  50 or older in the year 2022 you can contribute up  

to $27,000 into your 401k . Now the total that you  can contribute to all defined compensation plans  

has risen... It's gone from $58,000 last year  to up to $61,000 so we see a $3,000 increase.  

And what this means is if you do have a 401k and a  457b or you have a 401k at your company and a 403b  

you can actually contribute to both of those  accounts the total however cannot exceed $61,000  

of your own money, that doesn't include your  employer contributions. Just the employees  

own contributions. And moving on to the HSA-  the "health savings account" this is for all  

qualified medical expenses. If you are a single  individual it went up from thirty six hundred  

dollars to $3,650 so we get an extra fifty  dollars we can contribute there in 2022.  

And for the hsa family plan you can go from $7,200  up to $7,300 dollars so we got a hundred dollar  

increase in 2022 for the hsa family. And the hsa  catch-up is not changing it's still one thousand  

dollars in 2022 and you have to be turning age 55  or older and you'll be eligible to contribute an  

extra thousand dollars into your hsa. And again  just like the 401k this does not include employer  

contributions it's your own contributions only.  So if you do have a match in your hsa or your  

employer puts a thousand dollars in you can still  do the $3,650 or the $7,300. If you're a family  

in the FSA- the "flexible spending account" in  2021 was $2,750 and it went up a hundred dollars  

in 2022 you can contribute $2,850 dollars into an  FSA. The contribution limits for a simple ira or  

a simple 401k went up from $13,500 to $14,000. So  we saw a $500 increase there in 2022. You can do  

up to $14,000 now simple ira or simple 401ks. If  you've never heard that before it's typically for  

businesses that have fewer than 100 employees  they offer those. And for the last one the SEP  

IRA went up from $58,000 to now in 2022 you can  contribute $61,000. So we saw a three thousand  

dollar increase to the SEP IRA. A SEP IRA is a  "simplified employee pension", this is typically  

for people that are self-employed with you're the  only employer maybe you have one or two employees.  

And if you have a question about anything just go  ahead and throw it in the comment section guys...  

I'll be sure to answer it. If you have multiple  questions or you just have no idea where to  

start... Do I contribute to an IRA? Or a 401k  first? Do I do both? Should I be contributing into  

an HSA? And you're not really sure just sign up  for a one-on-one session at timwolffe.com. There  

are free 45-minute session for a limited time  only because I just launched them so they're free  

right now. At some point they're going to cost  money so you might as well take advantage of it  

while you can. I won't try to sell you anything or  charge you anything the only thing I do ask is if  

you got anything out of this video please go ahead  and hit the LIKE button it helps out a lot so I  

can keep making these videos!. Thanks for watching  guys and I'll see you in next week's video!