New Limits Expand 401(k), IRA Opportunities

You could spend two, or even three, decades in retirement. So, to pay for all those years, you’ll probably need to take full advantage of your retirement accounts. And in 2022, you may have expanded opportunities to deduct retirement plan contributions on your tax return.

Before looking at what’s changed this year, let’s review the key benefits of these accounts:

• Traditional IRA – You typically contribute pretax (deductible) dollars to a traditional IRA, and your earnings can grow tax-deferred.

• Roth IRA – You invest after-tax dollars in a Roth IRA, so your contributions won’t lower your ta...