Happy New Year! 2023 opens with the ability to contribute more to your retirement accounts. Due to the high inflation we saw in 2022, many contribution limits have been adjusted accordingly.
- Traditional and Roth IRAs – Contributions for 2023 have increased by $500 to $6,500. The catch-up contribution for those over the age of 50 is still $1,000.
- $401(k) and 403(b) plans – Limits have increased to $22,500. The catch-up contribution has increased to $7,500, allowing for a total contribution for those age 50 and older of $30,000 in 2023.
- Simple IRAs – You will now be allowed to put away up to $15,500 into your Simple IRA with an additional $3,500 in catch up contributions.
- SEP IRA – Maximum contribution for 2023 increases to $66,000.
Why are these important to know?
- Higher limits allow you to put more away towards your retirement for the year.
- Contributing more could help get your to your retirement goal more quickly.
- If you contribute as much as possible to your retirement accounts from a monthly or paycheck basis, it’s important to get those contribution amounts updated so that you don’t miss out on the higher annual limits.
If you would like to talk with us about maximizing your current retirement account contributions or how doing so will or could affect your personal retirement plan, please let us know. We are here to help and to serve you in whatever capacity we are able. We hope you had a blessed 2022 and are looking forward to wonderful 2023.