Page 13 - Investment Advisor - December 2021

eliminating access to brokerage advice view — not the law — that in the vast Administration, told senators on Oct. 7
for smaller retirement accounts, impact- majority of cases an individualized sug- that “there’s nothing that is more cen-
ing an estimated 10.2 million accounts gestion should trigger fiduciary status.” tral to ERISA than defining who is a
and $900 billion in savings.” If Labor “again requires the appli- fiduciary.”
Mason and Lopez further state that cation of a fiduciary duty standard to During her confirmation hearing
under the 2016 rule, “any individualized virtually all investment assistance, low before the Senate Health, Education,
suggestion by a financial professional and middle-income investors will lose Labor and Pensions Committee, Gomez
regarding retirement plan or IRA invest- significant access to brokerage ser- — who will be central in helping Labor
ments or distributions would trigger vices — generally, the only source of craft a new fiduciary rule — said that if
fiduciary status.” personalized assistance for them and a confirmed, she looks forward to work-
The widespread expectation that model that historically has helped many ing with the Securities and Exchange
a new Labor Department rule “will be savers achieve their financial goals, Commission as well as with Labor “to
largely resurrected is based both on infor- especially those with more modest sav- be briefed on the efforts of looking at
mal discussions by DOL officials and on ings,” Mason and Lopez said. the definition of a fiduciary in differ-
language in the preamble to Prohibited Lisa Gomez, President Joe Biden’s ent contexts, and taking another look at
Transaction Exemption 2020-02,” they pick to head the Labor Department’s the conflict of interest rule and how it
state. “The preamble set out DOL’s Employee Benefits Security would apply in different situations.”

IRS Posts 401(k), IRA Limits for 2022 place retirement plan, the phase-
out range is increased to $109,000
he Internal Revenue Service affecting dollar limitations for pen- to $129,000, up from $105,000 to
Tannounced in early November that sion plans and other retirement-related $125,000.
the amount individuals can contrib- items for tax year 2022 in Notice 2021- • For an IRA contributor who is not
ute to their 401(k) plans in 2022 has 61. It also boosted the income ranges for covered by a workplace retirement
increased to $20,500, up from $19,500 determining eligibility to make deduct- plan and is married to someone who
for 2021 and 2020. ible contributions to traditional IRAs is covered, the phase-out range is
The limit on annual contributions to an and Roth IRAs, and to claim the Saver’s increased to $204,000 to $214,000,
IRA remains unchanged at $6,000. The Credit in 2022. up from $198,000 to $208,000.
IRA catch-up contribution limit for indi- Taxpayers can deduct contributions • For a married individual filing a
viduals aged 50 and older is not subject to to a traditional IRA if they meet certain separate return who is covered by
an annual cost-of-living adjustment and conditions. “If during the year either a workplace retirement plan, the
remains $1,000, the IRS said. The catch- the taxpayer or the taxpayer’s spouse phase-out range is not subject to
up contribution limit for employees aged was covered by a retirement plan at an annual cost-of-living adjustment
50 and over who participate in 401(k), work, the deduction may be reduced, and remains $0 to $10,000.
403(b), most 457 plans, and the federal or phased out, until it is eliminated, • The income phase-out range for
government’s Thrift Savings Plan, also depending on filing status and income,” taxpayers making contributions to
remains unchanged at $6,500. the IRS explained. a Roth IRA is set to be $129,000
Thus, the IRS said, “participants in If neither the taxpayer nor the to $144,000 for singles and heads
401(k), 403(b), most 457 plans, and the spouse is covered by a retirement plan of household in 2022, up from
federal government’s Thrift Savings at work, the phase-outs of the deduc- $125,000 to $140,000.
Plan who are 50 and older can contrib- tion do not apply. • For married couples filing jointly,
ute up to $27,000, starting in 2022.” The The phase-out ranges for 2022 are: the income phase-out range is being
catch-up contribution limit for employ- • For single taxpayers covered by increased to $204,000 to $214,000,
ees aged 50 and over who participate a workplace retirement plan, up from $198,000 to $208,000.
in SIMPLE plans remains unchanged the phase-out range is increased • The phase-out range for a married
at $3,000. to $68,000 to $78,000, up from individual filing a separate return
$66,000 to $76,000. who makes contributions to a Roth
Adobe Stock The IRS also issued technical guidance ly, if the spouse making the IRA of-living adjustment and remains at
IRA is not subject to an annual cost-
OTHER MATTERS
• For married couples filing joint-
$0 to $10,000.
regarding all cost-of-living adjustments
contribution is covered by a work-
DECEMBER 2021 INVESTMENT ADVISOR 11