We have good retirement savings news for you in this edition of Money Monday.
The amount you can sock away in your 401(k), 457 or 403(b) plan increases by $1,000. So now you can set aside a total of$20,500 in 2022.
But that’s for those under the age of 50. If you are over 50 the catch-up provision allows you to set aside another $6,500 in 2022. That’s a grand total of $26,500, and a lot of savings in one year.
As a reminder: You can change your withholding for these accounts at any time, not just the open enrollment period.
Depending on your income you have another option to save still more in a traditional individual retirement account or IRA. You can save another $6,000 a year if you are under 50 and $7,000 if you are over 50.
If you and/or your spouse don’t have employment retirement plans, you can set aside the full amount. There are income thresholds if you do where the contributions phase out.
More: Money Monday section