Here’s why you should be saving more for retirement in 2022
DETROIT – Now that many people have burned through their budget for holiday gifts, it’s time to start thinking about setting some new savings goals in the new year.
The federal government is offering tax deferred incentives to not spend and instead save for retirement. The IRS has new savings limits for qualified plans like the 401(k) and 403(b)’s and the 457 retirement plans. You will now be able to save $20,500 -- that’s up from $19,500.
Saving that much will reduce your income for the year. You pay the taxes when you take money from the account, usually after retirement.
Read: More Money Monday coverage
Watch the video above for the full report. Copyright 2021 by WDIV ClickOnDetroit - All rights reserved.
High Detroit taxes: Key questions for homebuyers ▶ 1:18
High Detroit taxes: Key questions for homebuyers
The hidden danger of that first call to your insurance company ▶ 0:46
The hidden danger of that first call to your insurance company
Chase ends with deputies killing unarmed driver ▶ 0:34
Chase ends with deputies killing unarmed driver
President Trump arrives at Detroit Metro Airport ▶ 0:45
President Trump arrives at Detroit Metro Airport
Zimmerman's reopens after viral pepper-spraying ▶ 0:59
Zimmerman's reopens after viral pepper-spraying
Video captures Detroit shooting suspect in action ▶ 0:24
Video captures Detroit shooting suspect in action
Mattel launches first Barbie with autism ▶ 0:22
Mattel launches first Barbie with autism
Michigan ties to U.S. Olympic figure skating team ▶ 1:30
Michigan ties to U.S. Olympic figure skating team
911 call from Sherrone Moore's wife after firing ▶ 1:58
911 call from Sherrone Moore's wife after firing
Maria Scott's quick thinking prevents school tragedy ▶ 1:08
Maria Scott's quick thinking prevents school tragedy
Detroit Mayor Sheffield formally takes oath of office ▶ 3:26
Detroit Mayor Sheffield formally takes oath of office
Romulus shooting suspect disrupts court, cusses out judge ▶ 1:02
Romulus shooting suspect disrupts court, cusses out judge
Oakland County man honored for life-saving rescue on Bush Lake in Holly ▶ 0:45
Oakland County man honored for life-saving rescue on Bush Lake in Holly
Ypsilanti standoff damages home, disrupts local services ▶ 0:43
Ypsilanti standoff damages home, disrupts local services
Cat filter disrupts Michigan court hearing ▶ 0:23
Cat filter disrupts Michigan court hearing
Hearing in Washtenaw County foster family killings ▶ 1:37
Hearing in Washtenaw County foster family killings
Acker's death ruled accidental; USPS safety questioned ▶ 0:44
Acker's death ruled accidental; USPS safety questioned
Detroit sees lowest murder rate since 1965 ▶ 0:37
Detroit sees lowest murder rate since 1965
Hearing on Mario Willis arson case continues ▶ 1:22
Hearing on Mario Willis arson case continues
They were filming inside a business. That led to a confrontation ▶ 0:36
They were filming inside a business. That led to a confrontation
Armed man arrested at Romulus Middle School ▶ 2:27
Armed man arrested at Romulus Middle School
US/Canada icebreaking effort aids Great Lakes ▶ 0:31
US/Canada icebreaking effort aids Great Lakes
3 Preventable Ways Insurance Companies Use to Deny Your Claim.mp4 ▶ 0:51
3 Preventable Ways Insurance Companies Use to Deny Your Claim.mp4
Powerful winds cause Lake Erie to flee Ohio, Michigan ▶ 0:56
Powerful winds cause Lake Erie to flee Ohio, Michigan
Record-breaking snowfall hits Upper Peninsula ▶ 0:24
Record-breaking snowfall hits Upper Peninsula
Previous photo Next photo