2022

The various life expectancy tables used to calculate required minimum distributions (RMDs) from qualified retirement plans, IRAs, and nonqualified annuities have been updated for 2022. These updates have been done to reflect the increase in life expectancies experienced, as the current tables came out in the early 2000s. An RMD is the minimum amount you must withdraw from your retirement account each year. What do these changes mean? In short, the divisors are increasing, which means the amount required to be withdrawn is decreasing. Since smaller distributions will be required to be taken out

The IRS has recently released updated regulations regarding the contribution and plan limits for retirement plans and cafeteria plans for 2022. The following are Retirement Plan Limits and Thresholds for 2022: Total Defined Contribution Plan Limit $61,000 (up from $58,000 in 2021) 401(k)/Roth Employee Deferral Limit $20,500 (up from $19,500 in 2021) 401(k)/Roth Catch-up Contribution Limit (age 50+) $6,500 (unchanged from 2021) SIMPLE 401(k) Employee Deferral Limit $14,000 (up from $13,500 in 2021) SIMPLE 401(k) Catch-up Contribution Limit (age 50+) $3,000 (unchanged from 2021) IRA (Traditional