www.principal.com Open in urlscan Pro
2a04:4e42:c00::740  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to Content
 * For Individuals
 * Invest & retire
    * Ways to Save
      * Roth & traditional IRAs
      * Rollover IRA
      * Annuities
      * Retirement plans
    * My Retirement Plan
      * Enroll in your 401(k)
      * Rollover an account
      * Find a form
    * Get Help
      * Help for individuals
      * Find a financial professional
   
   Your financial future starts here
   
   Discover your path to investing and retirement

 * Insure
    * Ways to Insure
      * Income protection
      * Estate planning & irrevocable life insurance trusts
    * My Insurance
      * Find a dentist
      * Find a vision provider
      * Find a form
      * View a claim
    * Get Help
      * Help for individuals
      * Find a financial professional
   
   Peace of mind starts here
   
   Discover how insurance can help you protect what matters

 * Build your knowledge
    * Getting Started
      * Money basics
      * Investing 101
      * Just getting started
    * Living Your Life
      * Major & unexpected life events
      * Your career
      * Your family & home
      * Tough money questions
      * Taxes
    * Looking Ahead
      * Build your own financial plan
      * Planning for & protecting your future
      * Retirement
   
   See all topics and articles

For Businesses
Search
Clear
SearchLoading


Close search
Log inMenu
 1. Individuals
 2. Build Your Knowledge
 3. 2022 retirement contribution limits and income restrictions: What to know




2022 RETIREMENT CONTRIBUTION LIMITS AND INCOME RESTRICTIONS: WHAT TO KNOW

Putting away as much as possible for future you—in as many ways as possible—can
have huge long-term value. The IRS’s changes to retirement contribution limits
make this possible for more people in 2022.


2022 RETIREMENT CONTRIBUTION LIMITS AT A GLANCE

First, the IRS increased the max contribution for 401(k)s and other plans you
may have through your employer. Meaning your 401(k) can hold more money. IRA
contribution limits didn’t increase, but you can still make good progress toward
retirement.

If you’re 50 or older, you can continue to set aside more money in your
employer’s plan (if allowed by the plan) to help reach your retirement goal.
Learn how these catch-up contributions work.

AccountContribution limitCatch-up limit (if you're 50+) Employer-sponsored
plans:
401(k), 403(b), 457 plans, thrift savings plan $20,500 $6,500 Individual
retirement account (IRA) $6,000 $1,000 Roth IRA $6,000 $1,000

Note: Some retirement plans have a lower limit, so check the details of your
plan.

--------------------------------------------------------------------------------

Not ready to max out your accounts? Learn how to gradually increase your
contributions.

--------------------------------------------------------------------------------


UPDATES TO TAX DEDUCTION LIMITS AND INCOME LIMITS FOR IRA CONTRIBUTIONS

If you’re already contributing to a retirement savings plan at work, such as a
401(k), you can also contribute to a traditional IRA. These aren’t subject to
income limits, but there are restrictions on what you can deduct from your
taxes, based on your income. For 2022, those income ranges increased; get all
the details on the IRS website.

If you save outside of your workplace plan in a Roth IRA, income limits are a
factor. But good news: They’ve increased for 2022.

AccountHow it worksIncome limitTax deduction limit IRA Helps you invest for
retirement with pre-tax deposits. None. You may take full, partial, or no
deduction based on your income level and retirement plan. Roth IRA Funded with
after-tax dollars, but eventual qualified withdrawals may be tax-free.
Single/head of household: $129,000 for full contribution; $144,000 for a reduced
contribution.
Married filing jointly: $204,000 for a full contribution; $214,000 for a reduced
contribution. Not deductible.

Get additional information for specific circumstances on the IRS website.

--------------------------------------------------------------------------------

What’s the difference between a traditional and Roth IRA? Watch “It's simpler
than it sounds.”

--------------------------------------------------------------------------------


INCREASED 2022 HSA CONTRIBUTION LIMITS

If you’re already maxing out your 401(k) or other retirement contributions,
consider putting pre-tax dollars toward an HSA (health savings account), if you
have one. An HSA helps those with high-deductible health plans save taxes on
money earmarked for medical expenses not covered by the plan.

Unlike a flexible spending account (FSA), which has a “use it or lose it”
provision, the assets you contribute to an HSA are yours for the long term and
can be rolled over each year. Plus, an HSA offers a triple tax advantage: Money
put in isn’t taxed, it grows tax-free, and you’re not taxed when you take money
out to pay for qualified medical expenses.

Taking advantage of the increased 2022 HSA contribution limits may help you pay
for health-related expenses in retirement.

Coverage type2022 HSA limit Self-coverage $3,650 Family coverage $7,300


WHEN YOU HAVEN’T STARTED SAVING FOR RETIREMENT (YET)

No matter how far you are from retirement, don’t beat yourself up for not
starting sooner. The important thing is to get started.

Take the first step by setting aside a small amount of money. Then increase it
over time as you can afford it.

“Think about when you get a salary increase, bonus, or lump sum,” says Heather
Winston, assistant director of financial advice and planning at Principal®. “Use
it to your advantage. If your salary goes up 3%, taking 1% or 2% of that and
putting it toward your retirement is money you likely won’t miss.”

Tip: If your employer offers a matching contribution in its 401(k) plan, aim to
set aside enough to get that match. “The company can help to grow your nest egg,
and that free money can flow from them to you,” Winston says.

Let’s say you find ways to save as little as $25 a week. When contributing to a
401(k) plan for 20 years at a 6% rate of return, that amount could grow to more
than $49,000.1

Now imagine if you could set aside even more.


NEXT STEPS

 * If you have a retirement account from your employer with services by
   Principal, log in to review your current contribution amounts, beneficiaries,
   and more.
 * Questions about your IRA—how to add money or make changes? Visit our Help
   with IRAs page.

--------------------------------------------------------------------------------


READ NEXT

Want to keep more money this tax season? These 10 strategies can help.

Tax prep: 5 things you can do right now

Tax prep: 5 things you can do right now

1 The assumed rate of return in this example is hypothetical and does not
guarantee any future returns nor represent the returns of any particular
investment. Amounts shown do not reflect the impact of taxes on pre-tax
distributions. Individual taxpayer circumstances may vary. This is for
illustrative purposes only.

Principal® does not make available products related to Health Savings Accounts.

The subject matter in this communication is educational only and provided with
the understanding that Principal® is not rendering legal, accounting, investment
advice or tax advice. You should consult with appropriate counsel, financial
professional, or other advisors on all matters pertaining to legal, tax,
investment or accounting obligations and requirements.

Increasing your contribution does not guarantee you put yourself in a better
spot.

Investing involves risk, including possible loss of principal.

Insurance products and plan administrative services provided through Principal
Life Insurance Co. Securities offered through Principal Securities, Inc.,
800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, and
Principal Securities are members of the Principal Financial Group®, Des Moines,
Iowa 50392.

OUR COMPANY

 * About Us
 * Investor Relations
 * News Room
 * Sustainability

WE'RE HIRING

 * Careers
 * Global Jobs
 * Financial Professional Opportunities
 * Internships
 * Recent Graduates

OTHER SITES

 * For Dental Providers
 * For Financial Professionals
 * For Institutional Investors
 * Principal Funds

GET HELP

 * 800-986-3343
 * Help Topics
 * Contact Us

 * 
 * 
 * 
 * 

 * Terms of Use
 * Disclosures
 * Privacy
 * Security
 * Report Fraud
 * Site Map
   
 * Español

© 2022, Principal Financial Services, Inc.

Securities offered through Principal Securities, Inc., member SIPC




FILTERS

Information storage and access
Cancel Apply



PRIVACY PREFERENCE CENTER

When you visit any website, it may store or retrieve information on your
browser, mostly in the form of cookies. These “cookies” of information might be
about you, your preferences, or your device, and they’re mostly used to make the
site work as you expect it to. Cookies don’t usually directly identify you, but
they can give you a more personalized web experience. Because we respect your
right to privacy, you can choose not to allow some types of cookies. Click on
the category headings to read more or change your default settings. (Note:
Blocking some types of cookies may impact your experience on our site, as well
as the services we can offer you.)
More information


 * STRICTLY NECESSARY COOKIES
   
   Always active
   Strictly Necessary Cookies
   
   
   These cookies are necessary for our website to function and can’t be switched
   off in our systems. They’re set for you behind the scenes when you do things
   such as log in, fill out forms, make a request for services, or set your
   privacy preferences. You can set your browser to block or alert you about
   these cookies, but some parts of our site won’t work without them.
   
   Cookies Details‎


 * PERFORMANCE COOKIES
   
   Performance Cookies
   
   
   These cookies allow us to count how many times people visit our website, and
   how they get here, so we can measure and improve its performance. They show
   us which pages are the most (and least) popular, and how visitors move around
   on the site when they’re here. If these cookies are, we have less information
   about how to improve our sites that will be useful to you.
   
   Cookies Details‎


 * FUNCTIONAL COOKIES
   
   Functional Cookies
   
   
   These cookies enable our website to work smoothly and in a manner
   personalized to you. They may be set by us or by third-party providers whose
   services we’ve added to our pages. For example; downloading a customer
   service form using PDF. If these cookies are blocked, then some or all of
   these services may not function.
   
   Cookies Details‎


 * MARKETING COOKIES
   
   Marketing Cookies
   
   
   These cookies may be set through our site by our advertising partners. They
   may be used by those companies to build a profile of your interests and show
   you relevant advertisements on other sites. If these cookies are blocked, you
   will experience less targeted advertising.
   
   Cookies Details‎

Accept all Confirm my choices
Back Button

Back



Vendor Search Search Icon


VENDORS LIST

Filter Icon Filters (0)
Consent Leg.Interest

Select All

Select All Vendors
Select All Vendors
Select All Hosts

 * 
   
   View Cookies
   REPLACE-WITH-DYANMIC-HOST-ID
   
    * Name
      cookie name
      Host
      cookie host




COOKIES ACCEPTANCE



By clicking “Accept all”, you agree to storing cookies on your device to enhance
site navigation, analyze site usage, and assist in our marketing efforts. More
information can be found by clicking "Manage cookies".

View our Digital Privacy and Cookie Policy



Manage cookies Accept all