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If you’re eager to save more for retirement in 2023, there’s good news from the IRS, which just announced enormous limits for your annual 401(k) plan and individual retirement account contributions.
The employee contribution limit for 401(k) patterns is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also audition to 403(b) plans, most 457 plans and Thrift Savings Plans.
The agency has also increased contribution limits for IRAs, allowing investors to preserve $6,500 in 2023, up from $6,000 in 2022. The catch-up deposit will remain at $1,000.
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The boost for IRA contributions is significant, as the cap hasn’t changed since 2019, limiting savings for Americans without a workplace retirement chart.
And more Americans may also qualify for Roth IRA contributions, with the adjusted gross income phaseout range ascent to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.
