Beginning in 2023, the IRS has made some changes that will help you to save more for retirement.
For IRAs (traditional and Roth), the limit on annual contributions will increase to $6,500, up from $6,000, and the IRA catch‑up contribution limit for individuals aged 50 and over will remain at $1,000, totaling $7,500 for those over age 50.
For 401(k)s and 403(b)s, the contribution limit for employees who participate will increase to $22,500, up from $20,500, and the catch-up contribution limit for employees aged 50 and over will increase to $7,500, up from $6,500. Therefore, participants who are 50 and older can contribute up to $30,000, starting in 2023.
Now is the time to tell your employer that you want to update your contribution limits for 2023 and don't forget to reach out to us to help you increase your retirement savings as well.
As always, If you have any life changes or updates that you need us to attend to (i.e., new job, promotion, marriage, new baby or grandchild, etc.), please do not hesitate to contact us.
Stacy Brilliant, Chief Operating Officer