Hey ,

Last week, I shared new tax brackets for tax year 2023. Well, the IRS followed up with inflationadjustments to retirement plans too. And, as expected, you can now contribute a couple of thousands more to your retirement accounts.

What are the 2023 retirement plans adjustments?

1. In 2023, employees can contribute $22,500 to their 401(k) plans, up from $20,500 in 2022.
2. This also includes employees who contribute to 403(b), most 457 plans, and the federal government's Thrift Savings Plans
3. Annual IRA contributions increased to $6,500, from $6,000 (but the additional $1,000 catch-up contribution limit for individuals aged 50+ remains $1,000.)
4. But the catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $7,500 for tax year 2023, up from $6,500 (50+ year-olds in this category can, thus, contribute up to $30,000, starting in 2023.)
5. The adjusted gross income phaseout range for Roth IRA contributions rose to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.

To benefit more from these changes, start making plans now and strategize your monthly retirement contributions for 2023. You can contact me for a one-on-one session if you are confused about any of this. 

And remember, retirement contributions are too important to ignore. They determine whether you retire happily or as a sad old person who can’t afford a single holiday.

You can also read more about these changes in this IRS article. 

Remember to click the link below to book a session with me and talk about your retirement planning and how it can help reduce the taxes you pay.

Hey Entrepreneur! I am Folasade Ayegbusi. I am an Enrolled Agent, Accountant, Ex-insurance Broker, Speaker, and Small Business Growth Strategist. Additionally, I am a Mother, and Entrepreneur.

I have helped entrepreneurs and small business owners save over $25 million dollars in lost revenue, tax assessments, penalties, and interests over the last 12 months. I am confident that I can assist you with all of your accounting needs.