The Internal Revenue Service announced Friday that beginning in 2023, contributions to 401(k) accounts and other retirement plans will be increased by up to nearly 10%.
Beginning next year, a contribution of up to $22,500 will be allowed for 401(K), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. That amount is $2,000 more than is allowed now.
In other changes:
· The limit on annual contributions to an IRA increased to $6,500, up from $6,000.
· The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), most 457 plans, and the Thrift Savings Plan is increased to $7,500.
· Eligibility to deduct an IRA contribution depends on income and if your employer offers a workplace retirement plan. Click here to see the income levels.
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