401(k) Contribution Limits Rising Next Year

Using a 401(k) account, if your employer offers one, is one of the best and most tax-friendly ways to build a nest egg. You should start saving in a 401(k) account as soon as possible, though the IRS limits how much you can contribute each year. 

The good news is contribution limits for 2022 are up from last year and are projected to go even higher next year as a consequence of inflation.

401(k) Contribution Limits

Workers who are younger than age 50 can contribute a maximum of $20,500 to a 401(k) in 2022. That’s up $1,000 from the limit of $19,500 in 2021. If you're age 50 and older, you can add an extra $6,500 per year in "catch-up" contributions, bringing your