Millions of Americans can save more in tax-advantaged retirement accounts next year, after inflation adjustments made Friday by the Internal Revenue Service.
The employee contribution limit for 401(k) and similar workplace plans will jump $2,000 to $22,500 for 2023, the largest increase ever in terms of dollars and percentage, according to benefits provider Milliman.
The amount taxpayers can contribute to an individual retirement account will be $6,500 for 2023, up from $6,000. The limit hasn’t changed since 2019.
The 401(k) catch-up contribution amount allowed if you’re 50 or older will rise $1,000 to $7,500 for 2023. The catch-up contribution limit for individual retirement accounts, which isn’t subject to inflation adjustments, remains at $1,000.... Read More: WSJ