Maximizing Your 2023 Retirement Contributions (1 min. read)
By Michael Franks, Vantage Senior Wealth Advisor
2023 is off with a bang, and with this year comes beneficial changes to your retirement accounts. Retirement is the top financial goal for most individuals and couples and the increased amount they can save in their retirement accounts will go a long way to hitting their long-term retirement goals as well as decreasing what they pay in today’s taxes.
401(k), 403(b) and most 457 plans as well as the Federal government’s Thrift Savings Plan saw a healthy increase from $20,500 to $22,500 in 2023. For individuals over 50, the increase in their catch-up contribution to $7,500 means that they can now contribute a total of $30,000 a year to these accounts.
SIMPLES plans are not left out of the equation. Max contributions are now up to $15,000, and the catch up contribution for 50 year olds is now $3,500.
IRA’s and Roth IRAs also saw significant boosts. Both are increased to $6,5000, and individuals over 50 still have the catch-up contribution of $1,000.
It is critically important that you know about these options and how they can positively impact your retirement and overall financial health. We at Vantage are humbled and honored to partner with you and your family to enable you to navigate through your particular financial waters. Please reach out to your Vantage team if you have any questions or concerns about what these new changes may mean to you and your financial goals.
Sources:
https://www.irs.gov/newsroom/taxpayers-should-review-the-401k-and-ira-limit-increases-for-2023