Week of 11/19/2021

Thank you for your responses to our webinar poll. Unfortunately, there is no perfect day, but we plan to hold it on Thursday, December 9th, at 5pm. We will make any materials available after the webinar. To register, visit this link: 10 Estate Planning Mistakes to Avoid.

Many retirement plan limits have increased for 2022. See Ask the Joes® for more information. Brad McMillan says, in Forbes, that Fed Policy is “returning to normal.” What does this mean? This poll of investor expectations reveals a very bullish prediction for market returns. We do not share that level of optimism. It is unrealistic to expect the stock markets to provide above-average returns after a strong period of performance such as we have seen in the last several years. Five men volunteered to stand under a nuclear explosion in 1957. They survived the experience and most lived into their 70s and 80s. It is hard to imagine that happening today. A nice concluding thought from bestselling author James Clear: "When in doubt, just say thank you. There is no downside. Are you honestly worried about showing too much gratitude to the people in your life?"

Q: Have there been any changes to 401k plan contribution limits? A: Yes! For 2022, the following limits apply:  Deferral limits for 401(k) plans The limit on employee elective deferrals (for traditional and safe harbor plans) is $20,500 in 2022, up from $19,500 in 2021 and 2020. Catch-up contributions for participants age 50 or over at the end of the calendar year increase to $6,500 in 2022. Deferral limits for a SIMPLE 401(k) plan are $14,000 in 2022 (up from $13,500 in 2021 and 2020). Catch-up contributions for participants age 50 or over at the end of the calendar year are unchanged at $3,000. IRA (Traditional & Roth) limits are unchanged: $6,000 contribution total (between the two types) and a $1,000 catch-up contribution for IRA owners age 50 or over at the end of the calendar year. Health Savings Account (HSA) limits have also increased for 2022. For individuals and families with high-deductible plans (at least $1,400 and $2,800 respectively) the following limits apply: Individuals can contribute up to $3,650 to their HSA. Families have a contribution limit of $7,300. $1,000 catch-up contributions are allowed for participants age 50 or over at the end of the calendar year.

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