Photo of man reviewing his 2022 retirement contributions limits with their financial advisor.

2022 retirement contribution limits and income restrictions: What to know

Putting away as much as possible for future you—in as many ways as possible—can have huge long-term value. The IRS’s changes to retirement contribution limits make this possible for more people in 2022.

2022 retirement contribution limits at a glance

First, the IRS increased the max contribution for 401(k)s and other plans you may have through your employer. Meaning your 401(k) can hold more money. IRA contribution limits didn’t increase, but you can still make good progress toward retirement.

If you’re 50 or older, you can continue to set aside more money in your employer’s plan (if allowed by the plan) to help reach your retirement goal. Learn how these catch-up contributions work.

AccountContribution limitCatch-up limit (if you're 50+)
Employer-sponsored plans:
401(k), 403(b), 457 plans, thrift savings plan
$20,500 $6,500
Individual retirement account (IRA) $6,000 $1,000
Roth IRA $6,000 $1,000

Note: Some retirement plans have a lower limit, so check the details of your plan.


Photo of friends enjoying a meal together around a table.

Not ready to max out your accounts? Learn how to gradually increase your contributions.


Updates to tax deduction limits and income limits for IRA contributions

If you’re already contributing to a retirement savings plan at work, such as a 401(k), you can also contribute to a traditional IRA. These aren’t subject to income limits, but there are restrictions on what you can deduct from your taxes, based on your income. For 2022, those income ranges increased; get all the details on the IRS website.

If you save outside of your workplace plan in a Roth IRA, income limits are a factor. But good news: They’ve increased for 2022.

AccountHow it worksIncome limitTax deduction limit
IRA Helps you invest for retirement with pre-tax deposits. None. You may take full, partial, or no deduction based on your income level and retirement plan.
Roth IRA Funded with after-tax dollars, but eventual qualified withdrawals may be tax-free. Single/head of household: $129,000 for full contribution; $144,000 for a reduced contribution.
Married filing jointly: $204,000 for a full contribution; $214,000 for a reduced contribution.
Not deductible.

Get additional information for specific circumstances on the IRS website.


What’s the difference between a traditional and Roth IRA? Watch “It's simpler than it sounds.”


Increased 2022 HSA contribution limits

If you’re already maxing out your 401(k) or other retirement contributions, consider putting pre-tax dollars toward an HSA (health savings account), if you have one. An HSA helps those with high-deductible health plans save taxes on money earmarked for medical expenses not covered by the plan.

Unlike a flexible spending account (FSA), which has a “use it or lose it” provision, the assets you contribute to an HSA are yours for the long term and can be rolled over each year. Plus, an HSA offers a triple tax advantage: Money put in isn’t taxed, it grows tax-free, and you’re not taxed when you take money out to pay for qualified medical expenses.

Taking advantage of the increased 2022 HSA contribution limits may help you pay for health-related expenses in retirement.

Coverage type2022 HSA limit
Self-coverage $3,650
Family coverage $7,300

When you haven’t started saving for retirement (yet)

No matter how far you are from retirement, don’t beat yourself up for not starting sooner. The important thing is to get started.

Take the first step by setting aside a small amount of money. Then increase it over time as you can afford it.

“Think about when you get a salary increase, bonus, or lump sum,” says Heather Winston, assistant director of financial advice and planning at Principal®. “Use it to your advantage. If your salary goes up 3%, taking 1% or 2% of that and putting it toward your retirement is money you likely won’t miss.”

Graphic of a thumbtack. Tip: If your employer offers a matching contribution in its 401(k) plan, aim to set aside enough to get that match. “The company can help to grow your nest egg, and that free money can flow from them to you,” Winston says.

Let’s say you find ways to save as little as $25 a week. When contributing to a 401(k) plan for 20 years at a 6% rate of return, that amount could grow to more than $49,000.1

Now imagine if you could set aside even more.

Next steps

  • If you have a retirement account from your employer with services by Principal, log in to review your current contribution amounts, beneficiaries, and more.
  • Questions about your IRA—how to add money or make changes? Visit our Help with IRAs page.

1 The assumed rate of return in this example is hypothetical and does not guarantee any future returns nor represent the returns of any particular investment. Amounts shown do not reflect the impact of taxes on pre-tax distributions. Individual taxpayer circumstances may vary. This is for illustrative purposes only.

Principal® does not make available products related to Health Savings Accounts.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel, financial professional, or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Increasing your contribution does not guarantee you put yourself in a better spot.

Investing involves risk, including possible loss of principal.

Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392.