Here’s what you need to know about 2023 retirement plan contribution limits to help make your annual investment game plan!
401(k)s. You can now defer up to $22,500 from your salary, with a maximum total contribution from all sources of $66,000, including matching and profit sharing. You can save an additional $7,500 if you’re age 50 or older.
Traditional and Roth IRAs. Limits increase to $6,500 for Traditional and Roth IRAs or $7,500 if you are age 50 or older.
Roth IRAs Income Phase-Out. Your ability to contribute to a Roth IRA depends on your income. Married couples can make the full contribution if modified adjusted gross income (AGI) falls below $218,000, phasing out completely at $228,000. For single savers, the income range is $138,000 to $153,000. If you expect income to exceed the limits, consider Backdoor Roth IRA contributions.
Solo 401(k)s & SEP IRAs. Limits for Solo 401(k)s and SEP IRAs also increase to $66,000. Want to supercharge your Roth savings? Consider a Mega Backdoor Roth Solo 401(k).
SIMPLE IRAs. Limits for SIMPLE IRAs increase to $15,500 or $18,000 if you are age 50 or older.
Health Savings Accounts. HSA limits get a bump up to $3,850 for individuals and $7,750 for families covered under qualifying family plans. You can contribute an extra $1,000 if you are age 55 or older. Read 3 Tips to Maximize Your HSA to make the most of this powerful tool!
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