Gage Kemsley of Oxford Wealth Advisors shares the updated 2022 contribution limits for IRAs, Roths, 401ks, and more! Give us a call if you want to learn more about conversions or the limits on SEP IRAs & Simple IRAs. www.OxfordWealth.com…(read more)

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OWA Live! Contribution Limits 2022: Everything You Need to Know

With the new year just around the corner, it’s essential to stay updated with the latest information regarding financial contributions, particularly when it comes to OWA Live!. OWA Live! is a popular retirement savings plan that offers individuals the opportunity to invest in their future. To make the most of this plan, it’s crucial to understand the contribution limits for 2022. In this article, we will delve into everything you need to know about OWA Live! contribution limits for the upcoming year.

OWA Live! offers a tax-advantaged retirement savings plan, allowing individuals to save for their future while enjoying potential tax benefits. However, it’s important to adhere to certain contribution limits set by the Internal Revenue Service (IRS). These limits are designed to ensure fairness, prevent abuse of the system, and maintain the overall integrity of retirement savings plans.

For the year 2022, the contribution limit for OWA Live! remains unchanged from the previous year. Individuals below the age of 50 can contribute up to $19,500 to their OWA Live! plan. This includes both pre-tax and after-tax contributions. However, for individuals aged 50 or older, a catch-up provision allows for an additional contribution of $6,500. This brings the total contribution limit for those aged 50 and above to $26,000.

It’s worth noting that these contribution limits apply to the combined amount contributed to all 401(k) plans in which an individual participates. Hence, if someone is contributing to multiple retirement plans, such as OWA Live! and a separate employer-sponsored plan, they must ensure that the total contribution does not exceed the annual limits.

Additionally, it is essential to understand how employer matching contributions factor into the overall contribution limit. Employer matching contributions do not count towards an individual’s personal contribution limit. However, they do count towards the overall annual limit set by the IRS. Therefore, if an individual’s employer contributes $5,000 to their OWA Live! plan, the individual can still personally contribute the maximum allowed amount specified for their age group.

It’s crucial to keep yourself informed about the contribution limits as these limits may change from year to year. To make the most of OWA Live! and ensure you’re maximizing your retirement savings, consult with a financial advisor or contact the plan administrator for the most up-to-date information.

Contributing to OWA Live! not only helps secure your financial future but also offers tax advantages. The funds you contribute to your OWA Live! plan are made pre-tax, meaning they are deducted from your taxable income for the year. This lowers your overall tax liability and allows you to save for retirement more efficiently.

Furthermore, the account grows tax-deferred, which means you don’t pay taxes on any gains or interest until you withdraw the funds during retirement. This can lead to significant long-term savings as the earnings compound over time without being subject to immediate taxation.

In conclusion, understanding the OWA Live! contribution limits for 2022 is essential to make informed decisions regarding your retirement savings. By adhering to these limits and taking advantage of employer matching contributions, you can maximize your retirement savings potential while enjoying tax advantages. Stay informed, seek professional advice when needed, and make the most of OWA Live! to secure a comfortable and financially stable retirement.