2022 Contribution and Benefits Limits

  As we approach the end of 2021, Clearview Wealth Management provides you with the 2022 Contribution and Benefits limits.  These were announced by Social Security and the IRS. Social Security 2021 2022 Cost-of-living Adjustment (COLA) for December (payable in January). 1.3% 5.9% FICA tax rate (combined rate is 7.65% for both employees and employers) Social Security Medicare (Hospital Insurance). An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). 6.20% 1.45% 6.20% 1.45% Maximum Social Security earnings for tax contributions and benefits Medicare taxable earnings. $142,800 no limit $147,000 no limit Earnings required to earn one credit (max. of four credits per year). $1,470 $1,510 Retirement Earnings Test exempt amounts: Under full retirement age (FRA) throughout year (age 66 & 4 months)   Reaches FRA in year (time before the month FRA is attained)   FRA and over $18,960 $50,520 no limit $19,560 $51,960 no limit   Gifts and Estates 2021 2022 Annual Exclusion for gifts $15,000 $16,000 Estate Exclusion Amount $11,700,000 $12,060,000     Deductions 2021 2022 Read on! →