IRS Posts 401(k), IRA Limits for 2022

It also boosted the income ranges for determining eligibility to make deductible contributions to traditional IRAs and Roth IRAs, and to claim the Saver’s Credit in 2022.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. “If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income,” the IRS explained.

If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.

The phase-out ranges for 2022 are:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to $68,000 to $78,000, up from $66,000 to $76,000.
• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to $109,000 to $129,000, up from $105,000 to $125,000.
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to $204,000 to $214,000, up from $198,000 to $208,000.
• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is set to be $129,000 to $144,000 for singles and heads of household in 2022, up from $125,000 to $140,000.

For married couples filing jointly, the income phase-out range is being increased to $204,000 to $214,000, up from $198,000 to $208,000.

The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains at $0 to $10,000.