IRS 401(k) & IRA Limit Increases for 2023

By: Steven Guipe

The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 — up from $20,500 in 2022. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver’s Credit will also all increase for 2023.

Here are some of the changes for 2023:

1. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $22,500.
2. The limit on annual contributions to an IRA will increase to $6,500. The IRA catch‑up contribution limit for individuals age 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000.
3. The catch-up contribution limit for employees age 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $7,500.
4. The catch-up contribution limit for employees age 50 and over who participate in SIMPLE plans will increase to $3,500, up from $3,000.
5. The phase‑out ranges for deducting contributions to a traditional IRA will also increase. Taxpayers should review Notice 2022-55 regarding the details of their situation.
6. The income phase-out range for people making contributions to a Roth IRA will increase for taxpayers filing as single, head of household, and married filing jointly. Again, taxpayers should consult Notice 2022-55 for specifics about their situation.
7. The income limit for the Saver’s Credit for low- and moderate-income workers is $73,000 for married couples filing jointly, $54,750 for heads of household, and $36,500 for singles and married individuals filing separately.
8. The amount individuals can contribute to their SIMPLE retirement accounts will increase to $15,500.

Please reach out to the Maner Wealth team with any questions!

You can reach them by contacting maner@manercpa.com.

Investment advisory services offered through Maner Wealth, a State of Michigan Registered Investment Advisor. Subadvisory services offered through Advisory Alpha LLC, a SEC registered investment advisor. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. This email and any attachments are intended only for the individual or company to whom it is addressed and may contain information which is privileged, confidential and prohibited from disclosure or unauthorized use under applicable law. If you are not the intended recipient of the e-mail, you are hereby notified that any use, dissemination, or copying of this e –mail or the information contained in this e-mail is strictly prohibited by the sender. If you have received this transmission in error, please return the material received to the sender and delete all copies from your system. Please do not use email to request, authorize, or effect the purchase or sale of any security or insurance product or service, to send fund transfer instructions, or to affect any other transactions, as Maner Wealth and Advisory Alpha are not authorized to accept these requests in electronic format. Any such requests, orders, or transactions sent via email will not be accepted and will not be processed. Maner Wealth and Advisory Alpha outgoing and incoming email is electronically archived and recorded and is subject to review, monitoring and/or disclosure to someone other than the recipient. The transmission of information via email is not completely secure. Maner Wealth and Advisory Alpha cannot guarantee the security of personal information transmitted through email.