What are the new 401k and IRA limit increases for 2023 and how do they affect your pension?
Announced on Friday, the IRS will increase the contribution limit to 401(k)s by $2,000 to $22,500 for 2023.
Workers who are saving for retirement with 401(k), 403(b), most 457 plans, and the Thrift Savings Plan can contribute up to $22,500 to those plans in 2023.
For those saving in a traditional or Roth IRA the 2023 limit on contributions rises to $$6,500 next year, a $500 increase.
The “catch-up” contribution limit for employees age 50 or older who are involved in these plans also increases from $6,500 to $7,500 for 2023 for a total limit of $30,000.
Source link
