The IRS recently announced the 2023 inflation-adjusted dollar-amount ceilings and thresholds for a range of qualified retirement plans and accounts, including traditional IRAs and Roth IRAs.
The IRS notice also provides 2023 limits on elective deferrals for plans under Sec. 401(k), Sec. 403(b) and most plans under Sec. 457.
The revenue service set $22,500 as the amount individuals can contribute to Sec. 401(k) plans in 2023, up from $20,500 for 2022. The increase also applies to Sec. 403(b) plans, most Sec. 457 plans and the federal government's Thrift Savings Plan.
The limit on annual contributions to an IRA increased to $6,500, up from $6,000. The IRA catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living (COLA) adjustment and remains $1,000. Learn more.