2022 Retirement Account Deadlines

The upcoming tax deadline of April 18, 2023, looms large for millions of taxpayers, but it’s also the deadline for a few other things that you may need to know about, some of which can favorably help you with your 2022 tax return.

In addition to being the date by which your Form 1040 Individual Tax Return needs to be filed or extended, this is also the last date to make contributions to your Traditional IRA, Roth IRA, SEP IRA, or Health Savings Account (HSA) for tax year 2022.

Making prior-year contributions is as easy as making regular contributions, but when you make the contribution, you’ll need to tell your custodian to code the transaction to the prior year. It’s also important for you to make sure that you are not contributing over the limit, as you will be responsible for any penalties resulting from excess contributions.

You’ll also need to inform your tax preparer if you’ve made or will be making any of these catch-up contributions, because there are likely reporting requirements and potential deductions for these contributions.


Traditional IRAs and Roth IRAs

For 2022, IRA contributions are capped at $6,000 per taxpayer (or $7,000 if you were age 50 or older by the end of 2022), across all IRA accounts. This means that if you have a Traditional IRA and a Roth IRA, you can only contribute the maximum $6,000 amount ($7,000 if over 50) total for 2022, whether all to one account or split amongst them.


Health Savings Accounts (HSAs)

For 2022, if you had self-only High Deductible Health Plan (HDHP) coverage, you can contribute up to $3,650 to your HSA; if you had family HDHP coverage, you can contribute up to $7,300. If you were age 55 or older by the end of 2022, you can contribute an additional $1,000 as a catch-up contribution for either plan, for a maximum of $4,650 (self-only coverage) or $8,300 (family coverage). Be aware that any contributions your employer might make to your HSA count against this limit. Additionally, if you have family coverage in one spouse’s name and both spouses are over the age of 55, the spouse without the HSA plan may open their own HSA plan and contribute their own $1,000 catchup contribution. It’s important to note that this contribution must be in a separate plan under the spouse’s name only.

HSAs – not to be confused with Flexible Spending Accounts (FSAs), which are use-it-or-lose-it for any remaining balance at year end – can carry funds forward to pay medical bills in the future, or can be used to reimburse yourself for medical expenses that you may have already had. If you know you have large medical expenses upcoming, it could make sense to maximize your HSA contributions for 2022 to prepare for this expense, and potentially realize tax savings on your 2022 return. Or, if you paid medical expenses out-of-pocket in 2022 but haven’t yet fully contributed to your HSA, you could make a catch-up contribution to your HSA, realize a deduction on your tax return, and reimburse yourself from your HSA for that 2022 medical expense. HSAs are also a great retirement vessel as most people will eventually have health-related costs in their lifetime, so contributing to an HSA and not dipping into these funds until retirement is another tax saving tool.


Simplified Employee Pension IRAs – SEP IRAs

Contributions to your SEP IRA are also due April 18th, but unlike Traditional IRAs, Roth IRAs, or HSAs, this deadline can be extended if you file an extension on your Form 1040 Tax Return, which will extend the deadline for both your tax return and SEP contributions to October 16, 2023. SEP contribution limits are also a little less straight forward – for 2022, they are limited to the smaller of $61,000 or 25% of your employment compensation (including self-employment).

The potential extended deadline for SEP contributions also creates another planning opportunity – the additional six months might allow needed time to come up with the cash flow to fund the 2022 contribution.

While most people may be simply focused on filing their tax returns by the tax deadline of April 18, 2023, you should be aware that it’s also the deadline for a number of contributions that you can make for tax year 2022. These contributions can potentially help you realize tax savings for 2022, but also help you to maximize your ability to use these tax-advantaged accounts.

Please seek advice from your Krilogy investment advisor and tax preparer to see if you qualify for any of these tax saving options.

Krilogy® does not provide tax and legal advice. Krilogy® is affiliated with Krilogy Tax Services, LLC. Krilogy® Tax Services provides tax planning and preparation services for an additional cost to Krilogy® clients. You should consult your attorney or qualified tax advisor regarding your situation.

Important Disclosures