IRS Announces 2023 401(k) and IRA Limit Increases

Presented by Marc Aarons

I thought I’d provide a quick reminder note regarding the IRS’s announcement in late October regarding retirement account limits for 2023 (IRS). I’m here to help with any questions you may have.

401(k), 403(b), 457 plans, and Thrift Savings Plan

• The amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 in 2022.
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has increased to $7,500, up from $6,500.
• In total, participants 50 and over can contribute up to $30,000 ($22,500 + $7,500) beginning in 2023.

Traditional and Roth IRA

• The limit on annual contributions to an IRA increased to $6,500, up from $6,000 in 2022.
• The IRA catch-up contribution remains $1,000 for individuals 50 (and is not subject to an annual cost-of-living adjustment).
• The income phase-out range for taxpayers making contributions to a Roth IRA has increased to between $138,000 and $153,000 for singles and heads of household, up from between $129,000 and $144,000.
• The income phase-out range has increased for married couples filing jointly to between $218,000 and $228,000, up from between $204,000 and $214,000.

Reach out if I can help. I look forward to hearing from you.

Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

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