
Tax-advantaged gifting and saving are two popular ways to reduce taxes—within the limits set by the IRS. This year, those limits were increased nearly across the board (with one notable exception), allowing taxpayers to shelter even more of their wealth from Uncle Sam. Here's a look at the 2022 limits—and why you should strive to take advantage of any increases.
Tax-advantaged savings accounts
With inflation at its highest level in decades, failing to increase your contributions alongside rising limits could mean you're actually falling behind on your savings goals.
Tax-advantaged savings accounts
With inflation at its highest level in decades, failing to increase your contributions alongside rising limits could mean you're actually falling behind on your savings goals.
- Type
- 2021 limit
- 2022 limit
- Change
-
Type401(k), 403(b), 457(b), and their Roth equivalents>2021 limit$19,500 ($26,000 for those 50 and older)>2022 limit$20,500 ($27,000 for those 50 and older1)>Change+$1,000>
-
TypeTraditional and Roth IRAs>2021 limit$6,000 ($7,000 for those 50 and older)>2022 limit$6,000 ($7,000 for those 50 and older)>ChangeNo change>
-
TypeHealth savings account (individual)>2021 limit$3,600 ($4,600 for those 55 and older)>2022 limit$3,650 ($4,650 for those 55 and older)>Change+$50>
-
TypeHealth savings account (family)2>2021 limit$7,200 ($8,200 for those 55 and older)>2022 limit$7,300 ($8,300 for those 55 and older)>Change+$100>
-
TypeSEP-IRA3 and overall defined contribution plan limit4>2021 limit$58,000>2022 limit$61,000>Change+$3,000>
-
TypeSIMPLE IRA and SIMPLE 401(k)>2021 limit$13,500>2022 limit$14,000>Change+$500>
Gift and estate taxes
With the current estate tax exemption due to be halved in 2026, many estates could face bigger tax bills in the coming years—but maximizing annual gifts to heirs can help.
Gift and estate taxes
With the current estate tax exemption due to be halved in 2026, many estates could face bigger tax bills in the coming years—but maximizing annual gifts to heirs can help.
- Type
- 2021 limit
- 2022 limit
- Change
-
TypeAnnual gift tax exclusion>2021 limit$15,000 per recipient>2022 limit$16,000 per recipient>Change+$1,000>
-
TypeLifetime gift and estate tax exemption (individual)>2021 limit$11.7 million>2022 limit$12.06 million>Change+$360,000>
-
TypeLifetime gift and estate tax exemption (married filing jointly)>2021 limit$23.4 million>2022 limit$24.12 million>Change+$720,000>
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.
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