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401k Contribution Limits for 2022

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401k Contribution Limits for 2022 || 5.1% Increase in 401k Contribution Limit

In this video blog I want to discuss the new 2022 401k contribution limits. Because of inflation, 401k contributions and other qualified retirement accounts are seeing a 5.1% increase in contribution limits. If you are investing in a 401k, now is the time to update your 401k contribution amount and rebalance your 401k investments. What do I mean by rebalancing your 401k? Well, if you invest in multiple mutual funds in your 401k, each mutual fund has different growth throughout the year. One mutual fund might have made more while the other mutual fund might have made less.

What rebalancing your 401k does, is sells the appropriate amount of each mutual fund to get you back into your original risk tolerance percentages. What can happen if you are not careful is your retirement investment risk tolerance might be moderate risk but based on how the S&P 500 has grown, you are now at aggressive risk. If the S&P 500 has a bad year, now you lost more retirement savings than you originally wanted by being out of balance. For a more detailed retirement plan where we dive into your current 401k and make sure you are investing for retirement most efficiently, visit my website and schedule your complimentary retirement planning visit.

If you are doing retirement investing in your 40’s, retirement planning at 50 or retirement planning at 55, contributions to your 401k or retirement plan needs to be updated on a yearly basis. Your 401k provider will be able to adjust your 401k contribution based on your paycheck. Normally you can change your 401k contribution online, but if not, call your 401k plan administrator and they can get this updated for you.

If you do not invest in a 401k or do not have access to a 401k (self-employed or small business), keep investing for retirement using a Roth IRA or IRA. If you are younger, I would recommend a Roth IRA. If you are older (retirement planning in your 50’s or retirement planning in your 60’s) I would use an IRA. For a more detailed retirement plan, visit my website and schedule your complimentary retirement planning visit. We can discuss what retirement plan options are right for you as well as retirement investments that will help you get to retirement, through retirement, and protect your ability to stay in retirement.

Below are the tables for 401k contribution limits for 2022 and other qualified retirement plans (These are annual retirement contribution figures):

401k- $20,500


457- $20,500

TSP- $20,500

IRA-No change

Roth IRA-No change

SEP IRA- $61,000

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