Retirement Saving on Your List of Resolutions? Good News for 2023.
December 30, 2022:
The season of resolutions is upon us. For investors with the goal of boosting retirement account balances on their list, the IRS’s announcement on October 21, 2022 brings good news. The notice came just in time for new year planning, announcing increased contribution limits as follows:
401(k), 403(b), 457 plans, and Thrift Savings Plan
- The amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 in 2022.
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has increased to $7,500, up from $6,500.
- In total, participants 50 and over can contribute up to $30,000 ($22,500 + $7,500) beginning in 2023.
Traditional and Roth IRA
- The limit on annual contributions to an IRA increased to $6,500, up from $6,000 in 2022.
- The IRA catch-up contribution remains $1,000 for individuals 50 (and is not subject to an annual cost-of-living adjustment).
- The income phase-out range for taxpayers making contributions to a Roth IRA has increased to between $138,000 and $153,000 for singles and heads of household, up from between $129,000 and $144,000.
- The income phase-out range has increased for married couples filing jointly to between $218,000 and $228,000, up from between $204,000 and $214,000.
If you would like to schedule a plan update in the new year considering the information above, please do not hesitate to reach out. In the meantime, we wish you a happy and prosperous new year.
*Kindly note we will be closed for the holiday and in line with market hours on Monday, January 2nd, 2023.