The IRS has increased the contribution limits for most retirement savings vehicles, with the 2023 limits for 401(k) plans being $22,500, or $28,000 if you’re 50 or older. With the maximum contribution to a 401(k) in 2023 being $20,500 or $28,000 if you’re 50 or older, and the maximum amount you can defer into your 401(k) for 2023 being $22,500, it may be easier to achieve your 2023 retirement savings goals.
However, it is important to keep track of how much you’ve contributed to each retirement account in 2023 so you don’t exceed the annual contribution limits and incur penalties. The maximum amount you can contribute to a 401(k) plan (between you and your employer) is $66,000 in 2023, up from the $61,000 limit in 2022.
If you are allowed to make the maximum contribution and earn more than $60,000 per year, you will likely need to invest more for retirement than just the maximum allowed in your 401(k). You can also contribute additional funds to a Traditional IRA, Roth IRA, SEP IRA, and other retirement accounts.
In addition to the 401(k) contributions, you should also consider other retirement savings vehicles. For example, you can contribute to a Traditional IRA, Roth IRA, SEP IRA, and other retirement accounts. The contribution limits for these plans vary, so it is important to research the various retirement plans available to determine which one best suits your needs.
It is also important to consider the tax implications of contributing to a retirement account. For example, contributions to a Traditional IRA are tax-deductible, while contributions to a Roth IRA are not. It is also important to consider the invest options available within the various retirement accounts.
Finally, it is important to review the fees and expenses associated with the various retirement accounts. Some retirement accounts may have higher fees and expenses than others, so it is important to understand the cost associated with each account.
In conclusion, the IRS has increased the contribution limits for most retirement savings vehicles in 2023. The maximum contribution to a 401(k) in 2023 is $20,500 (or $28,000 if you’re 50 or older). It is important to keep track of how much you’ve contributed to each retirement account in 2023 so you don’t exceed the annual contribution limits and incur penalties. In addition to the 401(k) contributions, you should also consider other retirement savings vehicles and research the various retirement plans available to determine which one best suits your needs.
