Dear Clients,
If you haven’t already made adjustments to your retirement plan contributions, keep in mind it’s possible to allocate more to tax-deferred accounts in 2023. Consider the following options:
- 401(k), 403(b), and 457 plan participants can defer up to $22,500 of their wages, with another $7,500 possible for those over 50.
- Total defined contribution plan limits (including profit sharing, employer contribution, etc.) increased to $66,000.
- You can contribute up to $6,500 to an IRA and an (unchanged) additional $1,000 for those over age 50.
- Those with health savings accounts can contribute up to $7,750 (family) or $3,850 (self-only) and another $1,000 for those over age 55.
There is nothing more powerful than ensuring you are paying yourself the maximum amounts to your Plans. This is also a great time to increase your recurring contribution to your taxable account, if possible, as small habitual changes like this can have a very significant impact on your retirement options.
Additionally, if you are in the gifting mode, the ability to gift up to an annual estate exclusion of $17K ($34K per married couple) has been updated. This is another $1K increase from 2022.
Hope you are doing well and have a great week.
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