Additional Contributions to Retirement Plans

Additional Contributions for Traditional and Roth Retirement Plans

You can contribute up to $6,000 for the 2022 tax year to a traditional IRA, and this limit increases to $6,500 for the 2023 tax year. You can add catch-up contributions of $1,000 or more, or even a total of $7,000 or $7,500 (depending on the year) if you are age 50 or older.

Additional Contributions for Other Plans

The rules for additional contributions to SIMPLE plans, SEP plans, and SARSEP plans vary. You can contribute up to $14,000 to a SIMPLE IRA in 2022, and this limit increases to $15,500 in 2023. The catch-up contribution limit increases by $3,000 if you are age 50 or older and your employer allows additional contributions to your SIMPLE IRA.

Additional Contributions for 401(k) Plans

You can contribute up to $20,500 from your salary to your 401(k) plan in 2022, or $22,500 in 2023. If you are age 50 or older and your employer allows catch-up contributions, the limit increases by $6,500 in 2022 and by $7,500 in 2023.

Additional Contributions for 403(b) and 457(b) Plans

The contribution limits for 2022 to a 403(b) or 457(b) plan are usually similar to 401(k) plans: $20,500 in regular contributions in 2022, increasing to $22,500 in 2023, plus an additional $6,500 or $7,500 if you qualify for catch-up contributions.

Frequently Asked Questions (FAQs)

Why do contribution limits change from year to year? What is catch-up contribution?

Source: https://www.thebalancemoney.com/what-is-a-catch-up-contribution-2894413