
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)
|
$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 |
|