Bigger and Better 401(k) and IRA Contribution Caps in 2023

Maybe inflation isn’t all bad.  Social Security checks are going up 8.7%, you can buy a 1-year CD earning 4.5% interest, and (for those who aren’t spending every last time on more expensive groceries) we are seeing a big jump in retirement contribution limits for 2023.  To summarize:

 

401(k), 403(b), 457 plans:  Under age 50 limit will be $22,500 and catch up contribution for those 50 and older is $7,500

 

Traditional IRAs and Roth IRAs:  $6,500 for those under age 50.  The catch up contribution for those 50 and over remains $1,000.

 

Roth IRA income limitations:  $138,000 – $153,000 for singles/head of household filers.  $218,000 – $228,000 for married filing jointly.

 

SIMPLE IRAs:  Employee contributions are raised to $15,500 in 2023.

 

Be sure to adjust your percentages accordingly for January 1st payrolls if your intention is to capture the full amount of savings allowed. 

 

 

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Kristi Sullivan

My name is Kristi Sullivan and I have been helping people achieve financial security since 1996. I am a fee-only financial planner and public speaker. I do no investment or insurance sales for commissions. My clients pay me for guidance through their financial questions. I also work with employers to educate their employees about personal finance. I have been helping people make financial decisions for 18 years. I have worked in employee benefits and with individual clients/families. I hold the Certified Financial Planner designation. Sullivan Financial Planning, LLC is a Registered Investment Advisory firm with the State of Colorado. Areas of expertise include prioritizing savings goals, investment allocation, and wealth manager searches.