2022 – 10/31 – Inflation means you and your employees can save more for retirement in 2023
How much can you and your employees contribute to your 401(k)s next year? The IRS recently announced the 2023 cost-of-living adjustments. The amounts increased more than in recent years due to inflation. The 2023 contribution limit for employees who participate in 401(k) plans will increase to $22,500 (from $20,500 in 2022). This amount also applies to 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan. The catch-up contribution limit for employees age 50 and over who participate in 401(k)s and the other plans mentioned above will increase to $7,500 (from $6,500 in 2022). That means those age 50 and older can contribute up to $30,000 to their 401(k)s in 2023. https://bit.ly/2NMIz4g