401k Contribution Limits For 2023
In 2023, the Internal Revenue Service said, people will be able to put more money into their 401(k) retirement accounts.
Your 401(k) contribution limit will increase to $22,500 in 2023, an increase from the previous limit of $20,500 in 2022.
This move also has an effect on 403(b) plans, the majority of 457 programs, and the Thrift Savings Plan offered by the federal government.
The amount you can put into an IRA plan is also going up. This year, the limit for these plans is $6,000. In 2023, it will be $6,500.
These kinds of adjustments are done on an annual basis in order to help the contribution limitations stay up with the ever-increasing cost of living.
In 2023, people over 50 will be able to put $7,500 more into their 401(k), 403(b), most 457 plans, and the Thrift Savings Plan. This year, they got an extra $6,500.
In 2023, people over 50 will be able to put an extra $1,000 into their IRA plans. That's the same as in 2022.
On the IRS website, you can find out more about changes to 401(k) limits and other retirement account changes. The changes were announced by the agency at the beginning of October.
Also in October, the IRS announced the federal income tax brackets for 2023, which will affect taxes filed in 2024. Inflation also meant that the brackets had to be changed.