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2023 401(k) & IRA contribution caps jump


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One upside of inflation, per the IRS:

In 2023, employees can contribute up to $22,500 a year, up from $20,500, to 401(k), 403(b) and other tax-advantaged employer savings plans. The limit on what are called catch-up contributions, for people 50 and older, also rose, to $7,500 from $6,500. That means workers 50 and older can contribute a maximum of $30,000 to those plans next year.

The maximum contributions to individual retirement accounts will rise by $500, to $6,500.  (The IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000.)  The income ranges for determining eligibility to make deductible contributions to traditional IRAs and to contribute to Roth IRAs also increase in 2023.

Kevin Slater

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Also the federal income tax brackets will see a bigger jump than normal due to inflation. This will apply though to taxes filed in the beginning of 2024 for your 2023 earnings.

https://www.msn.com/en-us/money/taxes/the-irs-adjusted-its-income-tax-brackets-for-2023-e2-80-94you-might-owe-less-in-taxes-next-year/ar-AA13bxFU

Edited by BuffaloKyle
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On 10/21/2022 at 9:27 PM, Kevin Slater said:

Also a reminder that  self-employed folk (including escorts) can contribute to a solo 401(k), meaning that you delay paying income tax on those earnings.  We can contribute to IRAs as well.

Kevin Slater

Question for @Kevin Slater, can self employed contribute to a solo Roth 401(k)?  (I don't even know if solo Roth 401k exists).

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  • 2 months later...
On 10/23/2022 at 12:51 AM, Vegas_nw1982 said:

Question for @Kevin Slater, can self employed contribute to a solo Roth 401(k)?  (I don't even know if solo Roth 401k exists).

Looks like Kevin missed this... yes there is such a thing.  Unsure what all the catches are.  One you can't double dip over the contribution limits between solo Roth 401k and a solo 401k.  Etc

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