It’s the start of 2023 which means there are new contribution limits for various investment/retirement accounts. This is one of the biggest jumps I have ever seen all because inflation has been super high.
It’s important for you all to know these and to increase your contributions to reflect these changes.
401(K) and 403(B) Employee Contribution
You can contribute up to $22,500 per year to either of these accounts if you are under the age of 50. If over 50, then you will be able to add $7,500 extra for a total of $30,000.
This is up from $20,500 in 2022 ($2,000 increase).
401(K) and 403(B) Total Contribution Limit
Between the employee and employer contribution, you can get $66,000 into either of these accounts for those under 50. For those over, you can do $73,500 with the catch up contribution.
This is up from $61,000 in 2022 ($5,000 increase).
457(B) Contribution Limit
You can do $22,500 for 2023, but note there are different catch up rules for these accounts so check with your plan administrator before adding more if you are over 50.
This is up from $20,500 in 2022 ($2,000 increase).
ROTH IRA and Traditional IRA Contribution Limits
You can now contribute $6,500 to your ROTH or traditional IRA for 2023. If you are over 50, then you can do $7,500.
This is up from $6,000 in 2022 ($500 increase).
There are also changes here to at what income level you can contribute. Here are the changes for 2023.
The phaseout (to where you no longer can contribute) for singles is $138,000-$153,000 in 2023. For couples, it is from $218,000-$228,000. If your MAGI is above that, you’ll need to contribute indirectly via Backdoor ROTH IRA.
Simple IRA and Simple 401(K) Contribution Limits
In 2023, you can do $15,500 to either of these accounts.
This is up from $14,000 in 2022 ($1,500 increase).
Health Savings Account (HSA) Contribution Limits
You are able to contribute $7,750 per family or $3,850 for an individual to an HSA in 2023.
This is up from $3,650 (single) and $7,300 (family) in 2022 ($200 increase single, and 450 family).
Flexible Savings Accounts (FSA) Contribution Limits
You can now contribute $3,050 to an FSA in 2023.
This is up from $2,850 in 2022 ($200 increase).
Summary of changes seen below (whitecoatinvestor)
