Page 12 - Hobe Sound Reflections - July '22

Page 12, Hobe Sound

Financial Focus

New Limits Expand 401(k), adjusted gross income (MAGI) is $68,000 or less ($109,000 for and 403(b) plans is $20,500 – up $1,000 from 2021. If you’re
Single taxpayers can claim the full deduction if your modified
50 or older, you can put in an extra $6,500 this year, for a total
IRA Opportunities married filing jointly), with deductibility decreasing at higher of $27,000.
income levels and phasing out entirely at $78,000 ($129,000 for These changes may not seem monumental, but when you’re
By Sally Sima Stahl married filing jointly). But here’s the key point: Compared to saving for retirement, any opportunities to invest and potentially
You could spend two, 2021, these ranges are $2,000 higher for single filers and $4,000 reduce taxes, of whatever size, can be valuable. So, review your
or even three, decades in higher for those who are married and filing jointly – which options to determine how you can help yourself move closer to
retirement. So, to pay for all means that this year, you might have more opportunities to make your retirement goals.
those years, you’ll probably deductible contributions. This article was written by Edward Jones for use by
need to take full advantage And a similar type of increase applies to Roth IRA eligibility. your local Edward Jones Financial Advisor, Edward
of your retirement accounts. In 2022, if you’re a single filer, you can put in up to $6,000 Jones, Member SIPC.
And in 2022, you may have ($7,000 if you are 50 or older) in a Roth IRA if your modified Edward Jones is a licensed insurance producer in all states
expanded opportunities adjusted gross income (MAGI) is less than $129,000 – up from and Washington, D.C., through Edward D. Jones & Co., L.P.,
to deduct retirement plan $125,000 in 2021. Allowable contributions are reduced at higher and in California, New Mexico and Massachusetts through
contributions on your tax income levels and phased out if your MAGI is $144,000 or more, Edward Jones Insurance Agency of California, L.L.C.; Edward
return. up from $140,000 in 2021. If you’re married and file jointly, the Jones Insurance Agency of New Mexico, L.L.C.; and Edward
Before looking at what’s changed this year, let’s review respective ranges are $204,000 to $214,000, up from $198,000 Jones Insurance Agency of Massachusetts, L.L.C.
the key benefits of these accounts: to $208,000 in 2021. Again, higher ranges may mean more Edward Jones, its employees and financial advisors cannot
• Traditional IRA – You typically contribute pretax opportunities for you. (Consult your tax advisor to determine provide tax advice. You should consult your qualified tax advisor
(deductible) dollars to a traditional IRA, and your earnings your eligibility to contribute to a Roth IRA or make deductible regarding your situation.
can grow tax-deferred. contributions to a traditional IRA.) Contact us at (561) 748-7600, Sally Sima Stahl, AAMS, 1851
• Roth IRA – You invest after-tax dollars in a Roth IRA, And finally, the annual contribution limit for 401(k), 457(b) W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
so your contributions won’t lower your taxable income, but
your earnings can grow tax free, provided you’ve had your
account at least five years and you’re 59½ or older when you
begin taking withdrawals.
• 401(k) – A 401(k) or similar plan (such as a 457(b)
for state and local government employees or a 403(b)
for employees of public schools or nonprofit groups) is
generally funded with pretax dollars and provides tax-
deferred earnings. Some employers offer a Roth 401(k), in
which employees contribute after tax-dollars and can take
tax-free withdrawals if they meet the same age and length-
of-ownership requirements as the Roth IRA.
So, what’s different about these plans in 2022? First,
consider the traditional IRA. If you – and your spouse, if
you’re married – don’t have a 401(k) or similar plan, you
can always deduct the full amount of your contribution
on your tax return, no matter what you earn. But if one
or both of you are covered by an employer-sponsored
plan, then your deductions could be reduced or eliminated
based on your income.

Fiercely Protective

Like every mother, Commissioner Stacey Hetherington wants the best
for her boys… a good future, a better life. She loves this County, too.

And she gets fighting mad when others try to destroy our unique home!

Deeply rooted in our County,
Commissioner Hetherington
is working to protect our
water and our way of life.

• Stopping the pollution of our waterways

• Voting against uncontrolled growth

• Opposed to overdevelopment in the
City of Stuart

• Finding a balanced, smart approach
to growth issues that enhances our
community’s charm

• Keeping taxes low and affordable for
working families and struggling seniors
during these difficult times

• Prioritizing public safety

Paid by Stacey Hetherington, Rep, for Martin County Commission, Dist. 2