Retirement account contribution limits
Can you please confirm whether my understanding below is correct?
2022 401(k) contribution limit for those over 50yrs = $67,000 which can consist of (1) Employee pre-tax: 20,500 + 6,500 catchup; (2) Employer pre-tax match and (3) Employee after tax if the plan allows.
Over and above the $67,000 401(k) limit, a person (50 yrs and over) can contribute $7,000 to an IRA (assuming for now none of which is deductible).
I am also assuming that contributing directly to a Roth IRA is not allowed for this person.
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Mon, 2022-05-23 21:42
The 401k max is 67,500. Annual additions limit is 61,000 for 2022 plus the 6,500 catch up. The 67,500 can include what you listed plus designated Roth contributions and forfeitures from departing employees. The 7000 can be added for either a traditional IRA or Roth IRA in any combination. It is possible that MAGI would be low enough to allow the Roth contribution or partial contribution. The pre tax deferrals reduce MAGI.