Retirement contribution limits for 2023

With the calendar turning to 2023, the IRS has communicated new contribution limits for retirement plans, including workplace (401(k), 403(b), etc..) and individual retirement plans (Traditional and Roth IRAs). The increases for 2023 are substantial as participants in 401(k) plans who are 50+ are allowed to contribute up to $30,000 per year, an increase of $3,000 compared to 2022. Participants under 50 can contribute up to $22,500, an increase of $2,000.

Contribution Limit Summary

While most people have either a 401(k), IRA, or both, many also have 403(b), 457 and other retirement plans. The table below shows a more granular level of detail for each individual plan type.

*Solo 401(k) contributions consist of employee (100% of salary up to $22,500) and employer (up to 20% of net income up to $66,000) not including 50+ catch-up contributions.

Health Savings Accounts (HSAs)

While not necessarily a retirement account, Health Savings Account (HSA) contributions increased to $3,850 for an individual and $7,750 for a family contribution, with both allowing an additional $1,000 for those 50 and over.

HSAs are often used as a way to either pay for medical expenses in retirement, or even as other retirement income.

To learn more about which retirement plans are right for you, how much to contribute, and how it fits into your overall financial plan. Contact me or schedule an appointment today.