INDIANAPOLIS — If you are saving for retirement or a big health cost, certain benefit plan contributions are up in 2022.
Retirement
Employees who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan can contribute an additional $1,000 in 2022.
That brings the annual limit to $20,500.
The catch-up contribution for these accounts remain unchanged at $6,500. Catch-up contributions apply to people 50 and older.
As for Individual Retirement Accounts, the annual limit remains the same at $6,000. The catch-up contribution remains at $1,000.
The IRS adds the income ranges for "determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver's Credit all increased for 2022."
Health plans
The Health Savings Account self-only limit is up $50. That brings the annual contribution to $3,650. For families, it is $7,300.
If your employer contributes to your HSA, the money goes toward your annual limit.
As for Flexible Spending Accounts, that limit is up $100 to $2,850. For plans that allow the carryover of unused amounts, the maximum carryover amount is $570, an increase of $20 from 2021.
Employers determine whether or not an FSA carryover or grace period is allowed.