Employer-Sponsored Retirement Plan Limits
If you are in paid work, you probably pay attention to your salary and salary increases, but there are many other terms related to your job that you may not care about. This is because you may not need to think about them, and this is a good thing.
For instance, if we consider one of the terms, it is the one related to retirement plans. This term has many different parts and based on these parts, the whole picture may look confusing and hard to understand. It is necessary to know what you really need to know from this term, but even the phrases that sound quite complicated don’t have to be. Below you will learn everything you need to know about the 2022 retirement plan contribution limits.
Types of Employer-Sponsored Plans
Understandably, you may wonder why there is a term related to retirement plans. While retirement may seem to be a distant time in your future, the reality is that your employer has a retirement plan, and you are an employee.
This means that you and your employer have different retirement plans, but there is also equal collaboration. These are employer-sponsored pension plans, which means that your employer is sponsoring these plans by covering the costs while you still have a say regarding the fund.
Traditional IRA Income Limits
Roth IRA Income Limits
Limits for most retirement plans are based on the taxpayer’s filing status. This is usually expressed as the range of the modified adjusted gross income for joint filers, for example. Solo filers can generally use the “Single ” range or the next highest range in the case of a married filing separately status.
You can use the IRS retirement plan tool to figure out the limits for you.
SEP IRA, SIMPLE IRAs, and Solo 401(k) Plans
SEP IRA and SIMPLE IRA plans are relatively simple retirement plans that make it easy for small-business owners to get started with their retirement planning without much paperwork. Solo 401(k) plans also provide some attractive retirement tools for the self