403(b)(9) Contribution limits for 2022
Saving for retirement can sometimes seem like a daunting task. But utilizing the BMA America 403(b)(9) plan is one of the best and most tax-friendly ways to build a nest egg.
Common Financial Advice
Start saving as early as possible and save regularly through Dollar Cost Averaging, which is a disciplined approach to save a specified amount each month. The IRS does limit how much you can contribute each year, but fortunately there is good news for savers in 2022.
Workers who are younger than age 50 can contribute a maximum of $20,500 to a 403(b) in 2022. That’s up $1,000 from the limit of $19,500 in 2021. If you're age 50 and older, you can add an extra $6,500 per year in "catch-up" contributions, bringing your total 403(b) contributions for 2022 to $27,000.
A 403(b) is an employer-based retirement savings account that you fund through payroll deductions before taxes have been taken out. Those contributions lower your taxable income and help reduce your tax liability. For example, if your monthly income is $5,000 and you contribute $1,000 of that to your 403(b)(9), only $4,000 of your paycheck will be subject to tax. While the money is in your account, it is sheltered from taxes as it grows.
Further, with the Housing Allowance Exemption for ministers, you qualify for tax-free distributions from our plan.