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
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% taxation

15% taxation

20% taxation

Up to $40,400

$40,401- $445,850

Over $445,850

Up to $41,675

$41,676- $459,750

Over $459,750

Married Filing Jointly:

0% taxation

15% taxation

20% taxation

Up to $80,800

$80,801 – $501,600

Over $501,600

Up to $83,350

$83,351 – $517,200

Over $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:
Single

Married 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