2022 Contribution and Gifting Limits
Published January 2022
The IRS adjusts annually the contribution limits that can be made to various retirement accounts. For 2022 these are:
Roth IRA $6,000 (or $7,000 as a “catch-up” provision for those 50 years or older)
Traditional IRA $6,000 ($7,000 for 50+)
401k $20,500 ($27,000 for 50+)
Simple IRA $14,000 ($17,000 for 50+)
SEP IRA- the lesser of 25% of your net earnings OR $61,000
Please keep in mind that there are income limitations on the Roth IRA, tax deductibility of a Traditional IRA, and other types of retirement accounts.
Gifting for 2022:
Any gift to another individual is exempted from gift tax if it is below $16,000
For 2022, the lifetime exemption for both gift and estate taxes is $12.06 million per individual, or $24.12 million per couple
The lifetime exemption changes annually until 2025, and sunsets substantially to lower amounts thereafter
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.
Information contained herein does not involve the rendering of personalized investment advice but is limited to the dissemination of general information. A professional adviser should be consulted before implementing any of the strategies or options presented.
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