A big jump in cost-of-living calculations means a big jump in how much you can contribute to retirement accounts in 2023! Now is the time to plan your retirement contributions to take full advantage of this tax benefit. Here are annual contribution limits for several of the more popular retirement plans:

Plan20232022Change
SIMPLE
IRA
Annual Contribution
50 or over catch-up
$15,500
Add $3,500
$14,000
Add $3,000
+ $1,500
+ $500
401(k), 403(b),
457 and
SARSEP
Annual Contribution
50 or over catch-up
$22,500
Add $7,500
$20,500
Add $6,500
+ $2,000
+ $1,000
Traditional
IRA
Annual Contribution
50 or over catch-up
$6,500
Add $1,000
$6,000
Add $1,000
+ $500
No Change
AGI Deduction Phaseouts:Single; Head of Household
Joint nonparticipating spouse
Joint participating spouse
Married Filing Separately
(any spouse participating)
73,000 – 83,000
218,000 – 228,000
116,000 – 136,000
0 – 10,000
68,000 – 78,000
204,000 – 214,000
109,000 – 129,000
0 – 10,000
+ $5,000
+ $14,000
+ $7,000
No Change
Roth
IRA
Annual Contribution
50 or over catch-up
$6,500
Add $1,000
$6,000
Add $1,000
+ $500
No Change
Contribution
Eligibility
Single; Head of Household
Married Filing Jointly
Married Filing Separately
138,000 – 153,000
218,000 – 228,000
0 – 10,000
129,000 – 144,000
204,000 – 206,000
0 – 10,000
+ $9,000
+ $14,000
No Change
Rollover to Roth EligibilityJoint, Single, or Head of Household
Married Filing Separately
No AGI Limit
Allowed / No AGI Limit
No AGI Limit
Allowed / No AGI Limit
No AGI Limit
Allowed / No AGI Limit

What you can do

  • Look for your retirement savings plan from the table and note the annual savings limit of the plan. If you are 50 years or older, add the catch-up amount to your potential savings total.
  • Then make adjustments to your employer-provided retirement savings plan as soon as possible in 2023 to adjust your contribution amount.
  • Double check to ensure you are taking full advantage of any employee matching contributions into your account.
  • Use this time to review and re-balance your investment choices as appropriate for your situation.
  • Set up new accounts for a spouse and/or dependents. Enable them to take advantage of the higher limits, too.
  • Consider IRAs. Many employees maintain employer-provided plans without realizing they could also establish a traditional or Roth IRA. Use this time to review your situation and see if these additional accounts might benefit you or someone else in your family.
  • Review contributions to other tax-advantaged plans, including flexible spending accounts (FSAs) and health savings accounts (HSAs).

The best way to take advantage of increases in annual contribution limits is to start early in the year. The sooner, the better.

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