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IRS Is Raising Contribution Limits for 401(k)s and IRAs in 2023


Beginning in 2023, individuals with an employer-sponsored 401(k), 403(b), or Thrift Savings Plan will benefit from an IRS increase for the annual 401(k) contribution limit, from $20,500 to $22,500.

If you are above the age of 50, you can take advantage of an increased catch-up contribution value in 2023, up to $7,500 from $6,500 in 2022. This means you can contribute up to $30,000 to your 401(k).

IRA and Roth IRA Contribution Limits for 2023

Individuals with Roth and traditional IRAs can also contribute more to these accounts in 2023, up to $6,500 annually, up from $6,000.

Roth IRAs have income limits, so individuals making above a certain income threshold are eligible for reduced contributions. Individuals whose income is above the upper range of that threshold are not eligible at all.

In 2023, the income phase-out range for single filers is $138,000 to $153,000. For married couples filing jointly, it’s $218,000 and $228,000.

Learn more about these changes here: www.themilitarywallet.com