Are you a saver or a spender? Savers have good news for 2023 with increases to the IRS limits on retirement savings. For a 401(k) plan, the annual limit will be $22,500 for most people (up from $20,500), plus an additional $7,500 for those 50 and older (up from $6,500). For IRAs, the limit increases to $6,500, but catch-up contributions remain at $1,000.
High earners who have excess money to save can deposit more in after-tax contributions. The overall limit, including elective deferrals and employer match money, is $66,000 for most and $73,500 for those 50 and older. Not all plans allow for these additional contributions.
If you would like to simplify your various retirement accounts, Asset Advisors can guide you through a 401(k) rollover and other tricky IRA considerations. Give us a call today at (706) 650-9900.