The Internal Revenue Service (IRS) recently announced the 2023 cost-of-living adjustments affecting dollar limitations for 401(k) plans, pension plans and other retirement-related items.
Those who participate in 401(k) plans can contribute up to $22,500, others who are age 50 and older, can also take advantage of the “Catch-Up” contribution of an additional $7,500, for a total 401(k) contribution of $30,000.
Persons who participate in SIMPLE IRA plans can contribute up to $15,500 for 2023, individuals age 50 and older, can also take advantage of the “Catch-Up” contribution of an additional $3,500, for a total 401(k) contribution of $19,000.
For individuals who are not covered by employer-sponsored plans, they may have the ability to contribute to an Individual IRA. The IRA contribution limit for 2023 increases to $6,500 for taxpayers under the age of 50 and $7,500 for those age 50 and older.
Click here to read the complete IRS notice and see additional cost-of-living adjustments regarding retirement contribution limits.
Sources: Internal Revenue Service