Every year, the IRS reviews how much workers can put into their 401(k)retirement plans. Because of inflation, those limits went up significantly for tax year 2022.
This year, you can now tuck away up to $20,500 in your 401(k) plan. That’s a thousand dollars more than tax year 2021. Workers who are 50 or older, can contribute a little more, what’s called a “catch-up” contribution. That doesn’t change this year; it’s still $6,500.
Remember, many employers match contributions up to a certain amount. That’s free money, so don’t leave it on the table.
More Info: Here’s what’s new with 401(k) plans this year
