Every year, the IRS adjusts several tax numbers to reflect inflation. Inflation is now surging. It hit a 31-year high in October. As a result, the IRS increased the annual gift tax exclusion from $15,000 to $16,000 for 2022. This is the first increase to the annual gift tax exclusion since 2018.

The IRS also raised the federal estate tax exclusion from $11,700,000 in 2021 to $12,060,000 in 2022.

Further, the IRS increased the amount individuals can contribute to their 401(k) plans in 2022 to $20,500, up from $19,500 for 2020 and 2021.