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What’s the most I can contribute to my 401k in 2022 according to the IRS?

Due to changes in COLA, working Americans can now contribute more to their 401k, despite the issue of retirement security in the future.

A 401k is offered to employees by their employers, and has a lot of tax incentives.

Changes will be happening in 2022 after Oct. 2020-21 showed a 6.2% overall increase in the Consumer Price Index. This is due to inflation, and it’s the highest rate in one year since 1990.

Related: How much can I take out of or deposit into my 401k?


The inflation caused the Social Security Administration to increase COLA by 5.9%.

This makes it so workers will now be able to add more money to their 401k. If they had to add the same money, it would not be equivalent with the levels of inflation the U.S. is facing.

How are 401k plans and social security changing for 2022?

Right now the employee contribution limit for a 401k is $19,500. Next year it will be $20,500. The catch up deposits for people 50 and older will remain $6,500. Increases will also apply to 403b plans. the majority of 457 plans, and the Thrift Savings Plan.

Related: 20 million Americans miss out on thousands in free cash by not using 401k max match program


IRA contributions will remain the same.

Most people that actually end up maxing out their yearly contributions is only at a rate of 8.5%.

Social security has increased by 5.9% for 2022, and single beneficiaries will get an average of $92 more dollars per month.

SSI will increase by about $47 per month.



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