If you want to save more for your retirement in 2023, there is good news from the IRS, which just announced higher limits for your annual 401(k) plan and individual retirement account contributions.
The employee contribution limit for 401(k) plans increases to $22,500 in 2023 from $20,500, and catch-up deposits for savers age 50 and older will increase to $7,500 from $6,500. The new amounts also apply to 403(b) plans, most 457 plans, and Thrift Savings Plans.
The agency also increased contribution limits for IRAs, saving investors $6,500 in 2023 from $6,000 in 2022. The catch-up deposit will remain at $1,000.
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The increase in IRA contributions is significant because the limit hasn’t changed since 2019, which limits savings for Americans without a workplace retirement plan.
And more Americans may also be eligible for Roth IRA contributions, with the adjusted gross income phase-out range reaching between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples. declaring jointly.
