401K and IRA Contribution Limits for 2023

It may be time to up your 401(k) contributions. The IRS has increased the limit by $2,000 for 2023, the agency announced in October. 

Cost of living adjustments have brought the 2023 limit to $22,500 (up from $20,500) for individual contributions to retirement accounts including 401(k)s, 403(b)s, most 457 plans and Thrift Savings Plans. 

Individuals 50 and older can contribute an additional $7,500, increasing for the first time since 2020. That brings the total contribution limit for those 50 and older to $30,000. 

Taxpayers who contribute to individual retirement accounts (IRAs) can now put away an extra $500, effective 2023. The limit increased to $6,500, plus $1,000 in catch-up contributions for those 50 and older. The catch-up contribution limit is the same as last year. 

Income limits for Roth IRA contributions have increased as well. The income phase-out range for Roth IRAs will be between $138,000 and $153,000 for single filers and heads of household (up from between $129,000 and $144,000). 

The range for married couples filing jointly has gone up to $218,000 to $228,000 (from between $204,000 and $214,000). The phase-out range for married individuals filing separately remains at $0 to $10,000. 

Individuals can contribute up to $15,500 to SIMPLE accounts (savings incentive match plan for employees), up from $14,000 in 2022. 

If you’d like to discuss how Summerlin Benefits can assist you with new options designed for safety, to help you secure your principal and future contributions into your retirement plans, feel free to reach out for a no obligation meeting.