Retirement

Time to review 403(b) and IRA contribution limits

DATE | 11/29/21
2
Min
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Are you contributing as much as you can toward your retirement?

The contribution limit for the 403(b) is increasing from $19,500 in 2021 to $20,500 in 2022. The limit on annual contributions to an IRA stays the same at $6,000. If you’re not maximizing your contributions, you may wish to re-evaluate the amount you’re putting toward retirement. Not only do you lower your taxable income, you ensure that you’re doing everything you can to reach your retirement goals.

If maxing out contributions is not realistic for you right now, remember: With compound interest, even a small amount invested today can grow to a large sum by retirement.

Elective 403(b) Contribution Limits

Calendar yearSalary Reduction Contribution Limit15 Years of Service Catch-UpAge 50 and Over Catch-UpPossible maximum
2022$20,500$3,000$6,500$30,000
2021$19,500$3,000$6,500$29,000
  • Not all districts offer the 15 years of service catch-up provision in their 403(b) plan. Contact your district office to learn more.
  • Some employers only allow changes at the start of the school year and then again in January. Others allow more frequent changes. Call Member Benefits to assist you with updating your salary deferral amount.
  • Some districts may allow Roth 403(b) contributions. Your Roth contributions and your pre-tax contributions combined must not exceed the $20,500 limit for participants under age 50, or $27,000 for participants age 50 and above.

IRA (Roth and Traditional) Contribution Limits

Calendar yearUnder age 50Age 50 or older
2022$6,000$7,000
2021$6,000$7,000
  • You may contribute to both a Roth and Traditional IRA, but your combined contributions must not exceed the annual limits.
  • If you make automatic IRA contributions using SmartPlan or through payroll deduction (if available in your district), your contributions do not adjust automatically to meet the new limits. To make adjustments, call 1-800-279-4030 or print out an IRA Contribution Form.

NOTE: Because the maximum Roth IRA contribution may be reduced depending on MAGI (Modified Adjusted Gross Income), some high-income taxpayers may not be able to make Roth IRA contributions; however, they could make Traditional IRA contributions.