Money Monday: 2022 retirement savings changes -- it’s good news!

Amount you can save in plan increases in 2022

We have good retirement savings news for you. For more Money Monday tips:

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.

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About the Author:

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.