Inflation-Adjusted Retirement Account Figures for 2023 Released (11-02-22)

Inflation-Adjusted Retirement Account Figures for 2023 Released (11-02-22)

Last week the IRS released IRS Notice 2022-55, which contains retirement account inflation-adjusted income tax figures for the 2023 tax year.

Notable adjustments include:

 

  • The IRC §401(k) employee contribution limit is increased to $22,500 (up from $20,500 for 2022) and the catch-up contribution limit for taxpayers aged 50 or older is increased to $7,500 (up from $6,500), thus increasing the total 401(k) contribution for taxpayers age 50 and over to $30,000 for 2023 ($22,500 regular contribution + $7,500 catch-up contribution);
  • The IRA contribution limit is increased to $6,500 (up from $6,000 for 2022). The $1,000 IRA catch-up contribution limit is not subject to cost-of-living adjustments and remains unchanged;
  • The income phaseout range for taxpayer’s making contributions to a ROTH IRA is set as follows:
  • For single filers and HOHs: $138,000 to $153,000 (up from $129,000 and $144,000 for 2022);
  • For MFJ: $218,000 to $228,000 (up from $204,000 and $214,000);
  • MFS: Remains at $0 to $10,000 (not subject to cost-of-living adjustments);
  • The SIMPLE contribution limit is increased to $15,500 (up from $14,000); and
  • The SEP contribution limit is increased to $66,000 (up from $61,000).

 

The Notice is available at:

www.irs.gov/pub/irs-drop/n-22-55.pdf