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By Staff Reporters
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The IRS just said that the maximum contribution that an individual can make in 2023 to a 401(k), 403(b) and most 457 plans will be $22,500. That’s up from $20,500 this year.
People aged 50 and over, which have the option to make additional “catch-up” contributions to 401(k) and similar plans, will be able to contribute up to $7,500 next year, up from $6,500 this year. That’s means a 401(k) saver who is 50 or older can contribute a maximum of $30,000 to their retirement plan in 2023.
The IRS also raised the 2023 annual contribution limits on individual retirement arrangements, or IRAs, to $6,500, up from $6,000 this year. The IRA “catch-up” contribution limit remains at $1,000, as it’s not subject to an annual cost of living adjustment, the IRS said.
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Filed under: "Ask-an-Advisor", Accounting, Breaking News, Experts Invited, Investing, Retirement and Benefits, Taxation | Tagged: IRS, retirement plans, retirement savings plans |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Chief Government Affairs Officer for the American Retirement Association
Will Hansen told the Washington Post that this is the biggest bill concerning retirement in 15+ years. So what’s in it?
For starters, most businesses will be required to automatically enroll employees in 401(k) plans beginning in 2025.
The required age people have to start taking money out of their retirement account will be bumped up from 72 to 73 in 2023, and then to 75 in 2033.
Plus, older employees can now put more money into their 401(k) plans beyond regular contribution limits.
The bill also makes it easier for employers to establish emergency accounts for workers and limits penalties for employees who need to withdraw funds for emergencies from those accounts.
Fay
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