What to Know About Four New 401K and IRA Contribution Limits

When is the last time you checked in with your retirement contributions? Now might be the perfect time to look up automatic withdrawals from your paycheck to see if you’re maxing out your retirement savings in the best way. If it’s been some time since you reviewed your financial plan overall, consider this the perfect reminder to sit down with your financial expert and discuss goals for 2023 and beyond. As the end of the year approaches, there may be changes you can make that set you up for success.

With the change on New Year’s Even from 2022 to 2023, remember that you may have more options to save for your retirement in the near future. There are increased IRA and 401K contribution limits. The IRA contribution limit increases for a total increase by $500 to a total of $6,500 for anyone age 50 and older. Bear in mind that you also have the possibility of an annual ketchup contribution limit. This increases by $1,000 to a total of $7,500 for  401ks. The amount that maximum amount you can contribute to a 401K plan in 2023 has increased two $22,500. This is an increase of $2,000 and impacts the majority of 457 plans, the Thrift Savings Plan for the government, and 403b plans.

Make sure that you schedule a consultation with an experienced and qualified financial planner to discuss all of your planning options and to determine the most appropriate courses of actions for your needs. Planning ahead for your financial future with retirement is just one aspect of comprehensive financial planning, although it is an important one.