08.11.22

New Bill Would Boost IRA, Retirement Plan Contribution Limits for 1 Year

by: Melanie Waddell

House Republicans have introduced the Retirement Protection Act of 2022, which would increase the contribution limits for workplace retirement plans and IRAs — traditional and Roth — by $4,000 over the IRS-set limit for one year after enactment. Under the bill, the contribution limits for 2023 would be $24,500 for workplace retirement plans and $10,000 for IRAs. The bill was introduced by Rep. David Schweikert (R-Ariz.) and Byron Donalds (D-Fla.) at the end of July. The House passed its version of Secure Act 2.0, officially called the Securing a Strong Retirement Act of 2022, in March. The Senate Finance Committee in June passed the Enhancing American Retirement Now (EARN) Act, bipartisan legislation that’s intended to be included in the Senate’s version of Secure Act 2.0. The Senate Health, Education, Labor & Pensions Committee passed the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg. The bills from the HELP Committee and Finance Committee will be combined to make up the Senate’s Secure Act 2.0 package. The Retirement Protection Act may be included in the combined legislation. The Retirement Protection Act also sets the Savers’ Credit to 50 percent of contributions, amends the threshold amounts to get the 50 percent credit, and adjusts the thresholds for inflation.

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