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 SecurityMedicare (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 benefitsMedicare taxable earnings. | $142,800no 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$50,520no 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 |
| Standard deduction – Married Filing Jointly Single |
$25,100 $12,550 |
$25,900 $12,950 |
| Personal Exemption | $0 | $0 |
| Capital Gains Taxation | 2021 | 2022 |
| Single:0% taxation15% taxation20% taxation | Up to $40,400$40,401- $445,850Over $445,850 | Up to $41,675$41,676- $459,750Over $459,750 |
| Married Filing Jointly:0% taxation15% taxation20% taxation | Up to $80,800$80,801 – $501,600Over $501,600 | Up to $83,350$83,351 – $517,200Over $517,200 |
| Retirement Plans | 2021 | 2022 |
| 401k/403b/457 Contribution Limit Catch-up for age 50+ |
$19,500 $6,500 |
$20,500 $6,500 |
| Limitation on elective deferrals to defined contribution plans | $58,000 | $61,000 |
| IRA/Roth IRA Contribution Limit Catch-up for age 50+ |
$6,000 $1,000 |
$6,000 $1,000 |
| Income Phaseouts for Roth Contributions: SingleMarried Filing Jointly |
$125,000- $140,000$198,000- $208,000 |
$129,000- $144,000$204,000- $214,000 |
| Health Savings Accounts | 2021 | 2022 |
| Individual Family |
$3,600 $7,200 |
$3,650 $7,300 |
| Catch-up (Age 55+) | $1,000 | $1,000 |