Starting in 2023, you will be allowed to contribute up to $22,500 into your 401(k), 403 (b) and most 457 plans or Thrift Savings plans.
The Internal Revenue Service announced a record increase in allowable contributions to 401 and other tax-deferred retirement plans.
Starting in 2023, you will be allowed to contribute up to $22,500 into your 401, 403 and most 457 plans or Thrift Savings plans.that’s $2,000 – roughly 9.8% - more than the current $20,500 federal contribution limit, a change due largely to inflation. Also, the limit on annual contributions to an IRA increased to $6,500, up from $6,000, a boost of about 8%.The IRS catch-up contribution limit for individuals aged 50 and over is not subject to an annual COLA and remains $1,000. However, the catch-up contribution limit for employees aged 50 and over who participate in 401, 403, most 457 plans, and the federal government’s Thrift Savings Plan is increasing to $7,500, up from $6,500.
The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000. Income ranges for determining eligibility to make deductible contributions to traditional IRAs and to contribute to Roth IRAs and to claim the Saver’s Credit all increased in 2023.