Like clockwork, The Finance Buff has crunched the inflation numbers and has predicted the 2022 401k 403b 457 TSP IRA FSA HSA Contribution Limits before the IRS publishes the official limits in October/November.
401k/403b/457 employee contribution limits will go from $19,500 to $20,500 +1k. In our household, we have one of each so that’s +3k in 2022 tax deferred savings.
IRA limits will stay flat at $6,000 due to rounding. As I just hit the $19,500 401k employee contribution limit with my last July paycheck, I’ll set aside the additional net cash flow to fund a 6k backdoor Roth IRA contribution on Jan 3rd.
Family HSA contribution limits were confirmed by the IRS in May and will go from $7,200 to $7,300 +100.
$20,500 or multiples of seem too daunting? Start small and increase your tax deferred savings as you get raises and bonuses along the way. Sort of like Dave Ramsey’s debt snowball, create a savings snowball. See the power of compounding and more realistic average/median 401k balances by age. I still need to hit my 401k employee contribution limit 2 more years to have maximized as many years as I did not maximize (12 years).
