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New Retirement Plan Contribution Maximums for 2023

Posted November 22, 2022

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Some people like to go to the max in everything they do. Maybe you are like this or know someone who is.

“Maximizers” are the people who plan out every minute of their vacation days so that not one second is wasted. They also try everything at the dinner table and fill their glasses to the brim, where nothing but surface tension keeps them from spilling. These “maximizers” are notorious for making the most of any given situation and taking full advantage of every opportunity that is put in front of them.

But at the end of the day, even the “maximizers” hit capacity. Maybe their social battery has run out, they’ve eaten until their pants are too tight, or the sun is setting, and it’s time to call it a day.

You can find ways to maximize any situation until you hit capacity. The same is true for many of your financial investments.

The Internal Revenue Service (IRS) recently announced the 2023 cost-of-living adjustments affecting maximum contributions for 401(k) plans, pension plans, and other retirement-related items.

Those who participate in 401(k) plans can now contribute a maximum of $22,500, up from $20,500. Others aged 50 and older can also take advantage of the “Catch-Up” contribution of an additional $7,500 for a total 401(k) contribution of $30,000.

2023 Retirement Contribution Limits

People participating in SIMPLE IRA plans can contribute up to $15,500 for 2023, up from $14,000. Individuals aged 50 and older can also take advantage of the “Catch-Up” contribution of an additional $3,500 for a total 401(k) contribution of $19,000.

Individuals can also contribute to an Individual Retirement Account (whether you can deduct that contribution depends on several factors like income level and access to a 401(k)). The IRA contribution limit for 2023 increases to $6,500 for taxpayers under 50 and $7,500 for those aged 50 and older.

If you are a “maximizer” looking to maximize your 401(k) or IRA contributions in 2023, it’s essential to know where the limit is. As your partner in prosperity, we are here to keep you informed, educated, and empowered to make the right decisions for your financial future.

You can click here to read the complete IRS notice and see additional cost-of-living adjustments regarding retirement contribution limits. We’d love to talk if you have additional questions about your portfolio, retirement savings plan or how else we can help you reach your financial goals. Visit our website today to schedule a consultation with the Thayer Financial team.

Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the States of North Carolina, Tennessee, Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

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Hickory, NC 28602

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