Workers in 401(okay) plans could contribute as much as $20,500 to their accounts subsequent yr, up from $19,500 in 2021, the IRS mentioned.
The rise additionally impacts workers in 403(b) plans and most 457(b) plans, in addition to the federal authorities’s $774.2 billion Thrift Financial savings Plan, Washington, in line with an IRS discover posted Thursday.
The catch-up contribution restrict for workers aged 50 and over who take part in these plans stays unchanged at $6,500.
The restrict on annual contributions to a person retirement account additionally stays unchanged at $6,000. The catch-up contribution restrict for savers 50 and older stays at $1,000. IRA contributions usually are not topic to an annual cost-of-living adjustment, the IRS famous.