Savers can stash away an extra $1,000 in their 401(k)s in 2022, the IRS announced Thursday in a release about cost-of-living adjustments for retirement plans.
The contribution limit for workplace retirement accounts, including 401(k)s, 403(b)s, most 457 plans and Thrift Savings Plans, is being raised from $19,500 to $20,500.
Watch NBC 5 free wherever you are
WATCH HERECatch-up contributions for those accounts is not changing: Savers 50 and older can contribute an additional $6,500, bringing the total they can stash away to $27,000.
The amount workers can contribute to individual retirement accounts (IRAs) remains unchanged at $6,000. The catch-up contribution amount for those accounts will also stay at $1,000, meaning those 50 and over can put away $7,000 next year.
Get top local stories delivered to you every morning with NBC DFW's News Headlines newsletter.
SIGN UP Additionally, the income ranges to be eligible to contribute to Roth IRAs increase next year. The new phase outs are: between $129,000 and $144,000 for singles and heads of households (up from $125,000 to $140,000), and $204,000 to $214,000 for married couples filing jointly (up from $198,000 to $208,000).
The amount individuals can contribute to a SIMPLE (savings incentive match plan for employees) retirement account will also increase, from $13,500 to $14,000.
For more information on cost-of-living adjustments to retirement accounts, see the IRS's release.
Money Report
Sign up now: Get smarter about your money and career with our weekly newsletter
Don't miss: These are your 2022 401(k) and IRA contribution limits
