There's Some Great News for Retirement Savers in 2022

While a $1,000 bump in the contribution limit may not seem like a lot, the reality is that an extra $1,000 invested each year in your 401(k) could lead to a nest egg that's as much as $282,224 larger (depending on when you first begin contributing this extra amount to your savings.) For those maxing out their 401(k)s already, the opportunity to put this additional money into their account could make a huge difference in what they ultimately end up with. While the contribution limit unfortunately isn't increasing for this type of account, the income limits for making deductible contributions to a traditional IRA are going up, as are the income limits for making any type of contribution to a Roth IRA. If you're a single tax filer covered by a workplace retirement plan, the eligibility limit for a full contribution is going up to $68,000 in 2022 from $66,000 in 2021.