Tax Information & Schedules

All you need to know to plan for tax efficiency.

It’s important to prepare for tax efficiency year-round. Below you’ll find information to help guide you as you make decisions geared toward minimizing your tax burden. As always, meeting with your financial or tax advisor early and often will ensure your questions are answered.

2021 Year-End Tax Guide VIEW HERE >

2021-2022 Tax Season Guide  |  VIEW HERE >

2022 Tax Statement Mailing Schedule VIEW HERE >


Retirement Plan Contribution Limits

The Internal Revenue Service (IRS) has announced the following retirement plan contribution limits for the 2022 tax year. 2021 contribution limits are also still listed at the bottom of the page for your reference.

To schedule a complimentary, no-obligation appointment with Northwest Financial Advisors, click here or call us at 703-810-1072 (800-269-2156) x110 to discuss what these limits may mean for you and your retirement future. We look forward to assisting you.
 

2022 Tax Year:

IRA Contributions
An individual must have received an equivalent amount of earned income during the tax year to contribute to an IRA.

Traditional: $6,000 (unchanged from 2021)

Roth: $6,000 (unchanged from 2021)

Catch-up Contribution (age 50 & older): $1,000 (unchanged from 2021)

Maximum Contribution (age 50 & older): $7,000 (unchanged from 2021)

 

Traditional IRA Contributions Deductibility Modified Adjusted Gross Income (MAGI) Limits

When the taxpayer or spouse is covered by (or eligible for) an employer-sponsored retirement plan. If you and your spouse are not covered by an employer-sponsored plan, there are no income limits.

Single/Head of Household*: $68,000 - $78,000 (up from $66,000 - $76,000 in 2021)

Married, Filing Jointly or Qualifying Widow(er): $109,000 – $129,000 (up from $105,000 – $125,000 in 2021)

Married, Filing Jointly (taxpayer not covered by an employer-sponsored plan but spouse is)
$204,000 – $214,000 (up from $198,000 – $208,000 in 2021)

Married, Filing Separately: $0 - $10,000 (unchanged from 2021; not subject to a COLA)

*If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “Single” filing status.

See the chart at IRS.gov.

 

Roth IRA MAGI Range Income Limits

Single Filer/Head of Household or Married Filing Separately*: $129,000 – $144,000 (up from $125,000 – $140,000 in 2021)

Married, Filing Jointly or Qualifying Widow(er): $204,000 – $214,000 (up from $198,000 – $208,000 in 2021)

Married, Filing Separately**: $0 - $10,000 (unchanged from 2021; not subject to a COLA)

*And you did not live with your spouse at any time during the year
**And lived with your spouse at any time during the year

See the chart at IRS.gov.

 

No Age-Based Limit on IRA Contributions or Roth Conversions

With the passing of the SECURE Act in late 2019 and effective January 1, 2020, there is no longer an age-based limit on making contributions to a Traditional IRA.

Contributions to a Roth IRA or SEP IRA are still permitted regardless of age as long as the individual making the contribution, or his or her spouse, received an equivalent amount of earned income during the tax year.

Conversions from a Traditional IRA to a Roth IRA are permitted regardless of age and regardless of the amount of earned income.

 

Contributions to 401(k), 403(b) & most 457 plans, as well as the Federal Government’s Thrift Savings Plan (TSP)

Standard limit: $20,500 (increased $1,000 from 2021)

Catch-up contributions (age 50 & older): $6,500 (unchanged from 2021)

Maximum contribution (age 50 & older): $27,000 

For details, visit IRS.gov.

 

Social Security and Supplemental Security Income (SSI) Cost-of-Living Adjustment (COLA)

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics (BLS).

Effective January 1, 2022, Social Security benefits are set to increase by 5.9% for eligible beneficiaries, a 4.6% increase over 2021.

For details, visit SSA.gov.

 

Federal Pension COLA

Civil Service Retirement System (CSRS): 5.9% increase in 2022, a 4.6% increase over 2021.

Federal Employees Retirement System (FERS): 4.9% increase in 2022, a 3.6% increase over 2021.

For details on retirement related 2022 COLA adjustments, see “COLA Increases for Dollar Limitations on Benefits and Contributions” on IRS.gov.

 

Annual Gift Tax Exclusion Limits

$16,000 (up $1,000 from 2021) per individual

$32,000 (up from $30,000 in 2021) per married couple

The annual gift tax exclusion limit is per recipient and per the giver. Gift recipients do not owe any taxes on the gift.

 

 

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2021 Tax Year:

Retirement Plan Contribution Limits

The Internal Revenue Service (IRS) has announced the following retirement plan contribution limits for the 2021 tax year. 2020 contribution limits are listed at the bottom of the page for your reference.

To schedule a complimentary, no-obligation appointment with Northwest Financial Advisors, click here or call us at 703-810-1072 (800-269-2156) x110 to discuss what these new limits may mean for you and your retirement future. We look forward to assisting you.
 

IRA Contributions

An individual must have received an equivalent amount of earned income during the tax year to contribute to an IRA.

Traditional: $6,000 (unchanged from 2020)

Roth: $6,000 (unchanged from 2020)

Catch-up Contribution (age 50 & older): $1,000 (unchanged from 2020)

Maximum Contribution (age 50 & older): $7,000 (unchanged from 2020)

Traditional IRA Contributions Deductibility Modified Adjusted Gross Income (MAGI) Limits
For individuals covered by (eligible for) an employer-sponsored retirement plan.  If you are not covered by an employer-sponsored plan, there are no income limits.

Single/Head of Household*: $66,000 - $76,000 (up from $65,000 - $75,000 in 2020)

Married, Filing Jointly or Qualifying Widow(er): $105,000 – $125,000 (up from $104,000 – $124,000 in 2020)

Married, Filing Jointly: $198,000 – $208,000 (up from $196,000 – $206,000 in 2020)

Married, Filing Separately: $0 - $10,000 (unchanged from 2020; not subject to a COLA)

*If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “Single” filing status.

See the chart at IRS.gov.

Roth IRA MAGI Range Income Limits

Married, Filing Jointly or Qualifying Widow(er): $198,000 – $208,000 (up from $196,000 – $206,000 in 2020)

Married, Filing Separately*: $0 - $10,000 (unchanged from 2020; not subject to a COLA)

Single Filer/Head of Household or Married Filing Separately**: $125,000 – $140,000 (up from $124,000 – $139,000 in 2020)

*And lived with your spouse at any time during the year
**And you did not live with your spouse at any time during the year

See the chart at IRS.gov.

 

No Age-Based Limit on IRA Contributions

With the passing of the SECURE Act in late 2019 and effective January 1, 2020, there is no longer an age-based limit on making contributions to a Traditional IRA.

Contributions to a Roth IRA or SEP IRA are still permitted regardless of age as long as the individual making the contribution, or his or her spouse, received an equivalent amount of earned income during the tax year.

Conversions from a Traditional IRA to a Roth IRA are permitted regardless of age and regardless of the amount of earned income.

 

Contributions to 401(k), 403(b) & most 457 plans, as well as the Federal Government’s Thrift Savings Plan (TSP)

Standard limit: $19,500 (unchanged from 2020)

Catch-up contributions (age 50 & older): $6,500 (unchanged from 2020)

Maximum contribution (age 50 & older): $26,000 (unchanged from 2020)
 

For additional information on retirement plan contributions and limits, visit IRS.gov.

 

Social Security Cost-of-Living Adjustment (COLA)

Effective January 1, 2021, Social Security benefits are set to increase by 1.3% for eligible beneficiaries, a slighter lower increase than 2020’s 1.6%.


Federal Pension COLA

Civil Service Retirement System (CSRS): 1.3% increase in 2021, down slightly from 2020’s 1.6% increase but matching the average 1.3% increase over the last decade.

Federal Employees Retirement System (FERS): 1.3% increase in 2021, down slightly from 2020’s 1.6% increase but matching the average 1.3% increase over the last decade.

 

For details on retirement related 2021 COLA adjustments, see COLA Increases for Dollar Limitations on Benefits and Contributions on IRS.gov.