The limit on elective deferral contributions to 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will be increased to $22,500 for 2023. The catch up contribution for those 50 and older will increase to $7,500.
The maximum deductible IRA contribution for 2023 increase to $6,500 ($7,500 if 50 or older.)
Here are the 2023 IRA phase-out ranges defined by the IRS:
- For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $73,000 and $83,000, up from between $68,000 and $78,000.
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $116,000 and $136,000, up from between $109,000 and $129,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $218,000 and $228,000, up from between $204,000 and $214,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
If you have questions about retirement contributions, contact us at Jellison CPA.
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