2021-2022 IRS limitations for Optometrists

KEY POINTS:

  • (1) 401K: Increase to $20,500 (up from $19,500 in 2021), catch up $6,500 catch-up limit (50yo+) remains the same

  • (2) 403 (b) + Most 457 plans: Increase to $20,500 in 2022

  • (3) IRAs (Roth/Trad) limits remain the same at $6,000 for 2022

  • (4) Backdoor Roth IRA: Income ranges that determine eligibility to deduct contributions to traditional Individual retirement arrangements (IRAs), to contribute to Roth IRAs all increased for 2022.

  • (4) SIMPLE IRA: increase to $14,000, catch up remains the same at $3,000

  • (6) SEP IRA: Increase to 25% of net, up to $61,000

  • (7) Defined Benefit Plan Max increases to $245,000

  • (8) Social security max taxable wage base increase to $147,000 in 2022

  • (9) Health Savings Accounts (HSAs) increase to $3650 (single) + $7300 (Family)

  • (10) Flexible Savings Accounts (FSAs) increase to $2850 (single/family)

We cannot believe that 2021 is almost over! being said, it means that it’s time for updates on IRS limits (Effective January 1,2022). While all of these limits might seem higher, remember that it is mainly keeping up with inflation, which the consumer index is estimated at 4-5%. Please use these important limit to adjust your financial planning for 2022!

If you have any questions about your retirement plan or IRS limits, please contact your tax professional or check out our RECOMMENDED CPAs


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Want to learn how to plan for Retirement?Check out our The Optometrist's Guide to Retirement

Need help with your Tax? Check out our Recommended Tax Experts 

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About DatBuiOD

Dr. Bui is an optometrist at the Apple Wellness Center in the heart of Silicon Valley. He has a deep passion for ocular disease and healthcare technology. He started his career with $220,000 of student debt and was able to finish this massive debt in 5 years using budgeting and personal finance strategies, along with aggressive investing. He is a big advocate for passive index funding with a small portfolio toward individual technology stocks. Lastly, he wants to help all new doctors and high-earning professionals navigate toward wealth and financial independence.

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