Most of us are now fully immersed in 2023 and are focused on the year ahead. However, as tax season approaches, it is a good time to look back at 2022 to ensure that you maximized your 2022 contributions and tax benefits from savings vehicles.
Traditional IRAs:
You have until the tax filing deadline (April 18, 2023) to complete your 2022 Traditional IRA contributions. By making contributions to your Traditional IRA, you may be able to lower your 2022 tax liability.
If your filing status is single or head of household, you can fully deduct your IRA contribution up to $6,000 in 2022 if your modified adjusted gross income (MAGI) is $68,000 or less. If you are married and filing a joint return, you can fully deduct up to $6,000 in 2022 if your MAGI is $109,000 or less. Note that these figures assume you are covered by a retirement plan at work. For those age 50 or older, the maximum contribution is $7,000.
If you are not covered by an employer plan but your spouse is, and you file a joint return, your deduction is limited if your MAGI is $204,000 to $214,000 and eliminated if your MAGI exceeds $214,000. Single filers, head-of-household filers, and married joint filers who are not covered by an employer plan can generally deduct the full amount of their contributions.
Roth IRAs:
You have until the tax filing deadline (April 18, 2023) to complete your 2022 Roth IRA contributions.
If your filing status is single or head of household, you can contribute the full $6,000 to a Roth IRA if your MAGI is $129,000 or less. And if you are married and filing a joint return, you can make a full contribution if your MAGI is $204,000 or less. Again, contributions cannot exceed 100% of your earned income. For those age 50 or older, the maximum contribution is $7,000.
HSAs:
You have until the tax filing deadline (April 18, 2023) to complete your 2022 Health Savings Account contributions. By making contributions to your HSA, you may be able to lower your 2022 tax liability.
If your tax filing status is single, you can contribute a maximum of $3,650 to your HSA in 2022. And if you are married and filing a joint return, you can contribute a maximum of $7,300 to your HSA in 2022.
If you are 55 and older, you can make catch-up contributions to your HSA for an additional $1,000.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC.
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