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The IRS has released 2023 inflation-adjusted contribution limits, phase-out ranges, and income limits for various retirement accounts in Notice 2022 - 55, posted IRS.gov.
Highlights of changes for 2023
For 2023, the amount an individual can contribute to a 401(k), 403(b), and most 457 plans increases to $22,500, up from $20,500 in 2022. The catch-up contribution amount, for employees 50 and older who participate in these plans, increases to $7,500 from $6,500.
Note. This means participants over 50 can contribute up to $30,000 to one of these plans.
For IRAs, the amount an individual can contribute increases to $6,500 (up from $6,000 in 2022). The catch-up contribution amount remains $1,000.
The amount individuals can contribute to their SIMPLE accounts increases to $15,500 (up from $14,000 in 2022). The catch-up contribution limit for SIMPLE account increases to $3,500 (up from $3,000).
Phase-out ranges and income cap. In addition, the IRS released new income phase-out ranges for making contributions to a traditional IRA and Roth IRA, as well as the income limit on claiming the Saver's Credit.
If either the taxpayer or their spouse is covered by a workplace retirement plan during the tax year, the maximum amount they can contribution to a traditional IRA may be reduced (phased out) to zero, depending on the taxpayer's filing status and income.
Note. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-out rule doesn't apply.
The traditional IRA phase-out ranges for 2023 are:
The phase-out ranges for Roth IRAs are:
The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) increases to:
The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.
Details on these and other retirement-related cost-of-living adjustments for 2023 are in Notice 2022-55, available on IRS.gov.