Retirement Savings: IRAs and Employer Plan Contributions
Retirement and health savings maximum limits have increased for 2023, reflecting high inflation. Plan to adjust the amount you contribute next year to your employer plan (401k, 403b, or TSP) to $30,000 if you will be 50 or over in 2023 (and $22,500 if you won’t have reached 50 anytime next year).
IRAs have increased to $7500/$6500, depending on whether you’ve reached 50 yet.
Health Savings Account amounts and Flexible Spending Account maximums also went up slightly.
Be sure to factor in these higher amounts for your 2023 contributions. Let us know if you have question about the optimal way for you to benefit from higher contribution limits.