The IRS is raising the bar on retirement savings by increasing the annual contribution limits to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. To the plans just mentioned, participants can look forward to a $22,500 contribution limit for the 2023 tax year, which increased from the previous $20,500 limit (2022 tax year). Also in 2023, IRA contributions will increase to $6,500, from $6,000 (2022 tax year).
- Catch-up contributions towards 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increase to $7,500, up from $6,500 in 2022.
- SIMPLE plans increase to $3,500, up from $3,000 in 2022.
For additional detail on allowed contributions to all retirement plans, please refer to the following IRS press release here.