Key Tax Numbers for 2022

Key tax numbers for 2021 have been released by the IRS. This will help with your tax planning.

Every fall, the IRS announces changes to certain key financial figures for the upcoming year, based on the Consumer Price Index as of September 30. Here are a few of the highlights:

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), and most 457 plans has increased by $1,000 to $20,500. The “catch-up” adjustment for those over age 50 remains unchanged at $6,500. The total limit for those over age 50 in 2022 will be $27,000.

The contribution limits for Traditional and Roth IRAs remains unchanged at $6,000. The “catch-up” adjustment for those over age 50 also remains at $1,000, thus making the total contribution limit to be $7,000 for those over age 50.

The Social Security Administration announced there will be a 5.9% increase in Social Security benefits for 2022. The maximum amount of earnings subject to Social Security tax also will increase to $147,000.

The maximum Social Security benefit for a worker retiring at full retirement age in 2022 will be $3,113 per month.

The IRS also announced that the basic Federal exclusion amount for decedents who die in 2022 will increase to $12,060,000 ($11,700,000 in 2021). The annual exclusion for gifts for 2022 will increase to $16,000.

On November 12, the Centers for Medicare and Medicaid Services announced that the Part B Medicare premiums will be increasing $21.60 to $170.10 for 2022. The annual deductible for Medicare Part B beneficiaries is increasing $30 from $203 to $233.

Contact an EKS Associates advisor to discuss how these numbers impact your tax planning strategies.

*This article is updated each year to reflect the most updated numbers.

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