Page 44 - June 2022 Issue.indd

New Limits tax-deferred earnings. Some employers offer a
Roth 401(k), in which employees contribute aft er
Expand 401(k), tax-dollars and can take tax-free withdrawals if

IRA Opportunities they meet the same age and length-of-ownership
requirements as the Roth IRA.
Submitted by Ann Jacobs, Financial Advisor, So, what’s different about these plans in 2022? First,

Edward Jones - Denton 410-479-0271 consider the traditional IRA. If you – and your
spouse, if you’re married – don’t have a 401(k) or
You could spend two, or even three, decades in retirement. So, to pay similar plan, you can always deduct the full amount
for all those years, you’ll probably need to take full advantage of your of your contribution on your tax return, no matter
retirement accounts. And in 2022, you may have expanded opportunities what you earn. But if one or both of you are covered
to deduct retirement plan contributions on your tax return. by an employer-sponsored plan, then your deduc-
tions could be reduced or eliminated based on your
Before looking at what’s changed this year, let’s review the key benefi ts
income.
of these accounts:
Single taxpayers can claim the full deduction if your
Traditional IRA – You typically contribute pretax (deductible) dollars modified adjusted gross income (MAGI) is $68,000

to a traditional IRA, and your earnings can grow tax-deferred. or less ($109,000 for married filing jointly), with

Roth IRA – You invest after-tax dollars in a Roth IRA, so your contri- deductibility decreasing at higher income levels

butions won’t lower your taxable income, but your earnings can grow and phasing out entirely at $78,000 ($129,000 for
tax free, provided you’ve had your account at least five years and you’re married filing jointly). But here’s the key point:

59½ or older when you begin taking withdrawals. Compared to 2021, these ranges are $2,000 higher
for single filers and $4,000 higher for those who are

401(k) – A 401(k) or similar plan (such as a 457(b) for state and local married and fi ling jointly – which means that this
government employees or a 403(b) for employees of public schools or year, you might have more opportunities to make

nonprofit groups) is generally funded with pretax dollars and provides deductible contributions.
And a similar type of increase applies to Roth IRA

eligibility. In 2022, if you’re a single filer, you can put
> edwardjones.com | Member SIPC
in up to $6,000 ($7,000 if you are 50 or older) in a

Roth IRA if your modified adjusted gross income
Compare our CD Rates (MAGI) is less than $129,000 – up from $125,000
in 2021. Allowable contributions are reduced at
Bank-issued, FDIC-insured
higher income levels and phased out if your MAGI
2.10 % APY* Minimum deposit is $144,000 or more, up from $140,000 in 2021. If
1-year $1000 you’re married and file jointly, the respective ranges

2.90 % APY* Minimum deposit are $204,000–$214,000, up from $198,000–$208,000
2-year $1000 in 2021. Again, higher ranges may mean more
3.10 % APY* Minimum deposit opportunities for you. (Consult your tax advisor to
3-year $1000 determine your eligibility to contribute to a Roth
IRA or make deductible contributions to a tradi-
tional IRA.)
Call or visit your local financial advisor today.

Ann M Jacobs, AAMS® And finally, the annual contribution limit for 401(k),
Financial Advisor 457(b) and 403(b) plans is $20,500 – up $1,000 from
105 Franklin St 2021. If you’re 50 or older, you can put in an extra
Denton, MD 21629-1207 $6,500 this year, for a total of $27,000.
410-479-0271
These changes may not seem monumental, but when

* Annual Percentage Yield (APY) effective 05/19/2022. CDs offered by Edward Jones are you’re saving for retirement, any opportunities to
bank-issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid)
per depositor, per insured depository institution, for each account ownership category. Please invest and potentially reduce taxes, of whatever
visit www.fdic.gov or contact your financial advisor for additional information. Subject to size, can be valuable. So, review your options to
availability and price change. CD values are subject to interest rate risk such that when interest
rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the investor can lose determine how you can help yourself move closer
principal value. FDIC insurance does not cover losses in market value. Early withdrawal may not
be permitted. Yields quoted are net of all commissions. CDs require the distribution of interest to your retirement goals.
and do not allow interest to compound. CDs offered through Edward Jones are issued by banks

and thrifts nationwide. All CDs sold by Edward Jones are registered with the Depository Trust This article was written by Edward Jones for use by your local
Corp. (DTC). Edward Jones Financial Advisor. Edward Jones, Member SIPC
FDI-1867K-A © 2022 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED.
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