I thought I’d post a quick note regarding the IRS’s recent announcement on October 21, 2022, regarding retirement account limits for 2023.
The announcement comes just in time for planning for the new year. That said, let me know if you have questions or would like to jump on a call for a quick end-of-year portfolio review. I’m here to help however I can.
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.
Reach out if I can help! I look forward to hearing from you.
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Photo by Liza Summer