Deadlines are relentless, whether for tax filings, health plan open enrollments or required distributions from retirement savings. The clock is always ticking, even in retirement, and the consequences for missing a financial deadline can be painful.
This guide to key dates in 2022 serves as both a reminder and a checklist of what you need to do and when. Post it on your refrigerator or thumbtack it to a bulletin board and use it to manage your finances better and on time.
JAN. 1. A new year is a clean slate, a chance to pare down your spending and beef up your savings. In 2022, you have a bigger incentive to do both because the maximum amount that can be contributed to an employer’s retirement savings plan jumps to $20,500, up from $19,500 for the past two years. People age 50 and older can sock away an additional $6,500.
The contribution limits for IRAs remain unchanged at $6,000, with an additional $1,000 allowed for someone 50 or older. Although there is no age limit for contributing to an IRA, you will need enough earned income to cover the contributed amount. Note that IRA contributions phase out for high earners (see IRS Publication 590-A).
The start of the new year also marks the beginning of traditional Medicare’s general enrollment period, which lasts until March 31. During this window, individuals who missed signing up for Medicare when they turned 65 or during a special enrollment period get another chance, with coverage beginning July 1. The same window also serves as Medicare Advantage’s open enrollment period, when those already enrolled in an Advantage plan can elect a different one or switch to traditional Medicare.
JAN. 18. The calendar and the Martin Luther King holiday give you three extra days to pay fourth-quarter 2021 estimated taxes. You can skip this deadline, however, if you file your taxes for the year and pay any remaining balance by Jan. 31.
MARCH 31. General enrollment for traditional Medicare and open enrollment for Medicare Advantage end.
APRIL 1. This deadline only matters to those who turned 72 in 2021 and didn’t take a required minimum distribution last year. Age 72 is when you must begin taking distributions from tax-deferred retirement savings accounts, but first-timers can delay taking an initial RMD until April 1 of the year following their 72nd birthday. Thereafter, the deadline for taking RMDs is every Dec. 31. If you delay taking your first RMD, you will need to take a second distribution in the same year, which will jack up your overall taxable income and possibly tip you into a higher tax bracket.
Although Roth IRAs have no required minimum distributions, Roth 401(k)s do. You can skip taking an RMD from your current employer’s plan …….