The Sprint to FI

2022 Contribution limits

The IRS recently released its 2022 contribution limits for retirement accounts, and I took a look to see what these changes make for Cat and myself.


The biggest vehicle we use for retirement savings is the 401k.  We both have them and this year, my employer increased the match so you can be sure I will be contributing again in 2022.  The 401k contribution allowance has increased from $19,500 to $20,500 with the over 50s catch up contribution of $6,500.  This means that Cat and I can put up to $27k each into our retirement accounts.  That’s a whopping $54k removed from our taxable income (assuming we contribute the max) and that is significant.

Roth IRA

We both earn too much to contribute to a Roth, but we can do the Roth rollover.  However the Roth contribution limits remains the same as last year at $6000 with an allowed catch up of an additional $1000 for a total of $7000.


The HSA is the newest of our investment vehicles, with my company only offering one starting in last year. The limit is low but I feel this is one of the better investment vehicles with all its tax advantages.   The limit for 2022 has increased to $3,650 from $3,600.

To conclude, the limits have risen generally but the most significant is the 401k limit.  The 401k contribution allowance does not just allow us to save efficiently but allows us to dramatically reduce our tax burden.

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