Retirement Accounts Get a Boost In 2023

In 2023, retirement accounts will get a much-needed cost-of-living adjustment as inflation continues to rise. For most, this means you will be allowed to contribute more money to your work based 401(k) plan or an IRA. See below for a comparison of 2022 contribution limits and the new limits for 2023.

2022 Contribution Limits

· 401(k), Thrift Savings Plan, 457 Plans, and 403(b)

o $20,500

· Catch-up limits for 401(k), Thrift Savings Plan, 457 Plans, and 403(b)

o Those 50 years or older

§ $6,500

· Roth and Traditional IRAs

o $6,000

· Catch-up limits for Roth and Traditional IRAs

o Those 50 years or older

§ $1,000

New 2023 Contribution Limits

· 401(k), Thrift Savings Plan, 457 Plans, and 403(b)

o Increased to $22,500

· Catch-up limits for 401(k), Thrift Savings Plan, 457 Plans, and 403(b)

o Those 50 years or older

§ Increased to $7,500

· Roth and Traditional IRAs

o Increased to $6,500

· Catch-up limits for Roth and Traditional IRAs

o Those 50 years or older

§ Remains $1,000

For assistance or questions about these changes, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.

*** The information provided above is for general informational purposes only. It is not to be considered financial, legal, or tax planning advice. ***