The IRS released annual inflation adjustments to income tax brackets and many other adjustments for 2023 on Tuesday which are followed by today’s announcement of the 401(k) contribution limits for 2023.
The contribution limit for retirement accounts such as 401(k)s, 403(b)s, most 457 plans and TSP accounts has increased to $22,500, up from $20,500, the largest increase for retirement savings contributions in history. The contribution limit to an individual retirement account (IRA) increased to $6,500 for 2023, up from $6,000. The 401(k) catch-up contribution if you are 50 or older will rise $1,000 to $7,500 for 2023. The catch-up contribution limit for individual retirement accounts remains at $1,000.
If you have any questions about the tax brackets or retirement contribution limits for 2023 and how that may impact you and your financial picture, head to the IRS website for more information or email us at firstname.lastname@example.org or schedule some time to connect here.