The Internal Revenue Service recently announced increases to the amount that individuals can contribute to their 401(K) and IRAs.
For individuals who participate in 401(k), 403(b), most 457 plan or the federal government’s Thrift Savings Plan the contribution limit has increased to $22,500 (up from $20,500). For individuals with IRAs the limit on annual contributions has increased to $6,500 (up from $6,000).
The “catch-up” contribution limit for individuals aged 50 has increased as well to $7,500 allowing those individuals to contribute up to $30,000 annually, starting in 2023. The “catch-up” contribution limit for employees aged 50 and over who participate in SIMPLE plans has also increased to $3,500.
Further, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, Roth IRAs, and to claim the Saver’s Credit all increased for 2023 as well.
As always, Beige Law, PLLC advises to consult with a qualified tax professional and financial planner to see how these recent increases may benefit you.
If you have an IRS or New York State tax issue the attorneys at Beige Law, PLLC can help. Contact our office today and start putting your tax issues behind you today.