There are some big changes coming to retirement account contributions, and we wanted to share this good news with you as the new year kicks off.
1) Traditional IRA or Roth IRA, the annual contribution limit has increased $500 for the first time since 2019. That means the total annual contribution is now $6,500. Those age 50 and older can contribute an additional $1,000 for a total of $7,500.
2) If you have a SIMPLE IRA the new annual amount individuals can contribute is $15,500. Those age 50 or older can take advantage of the $3,500 catch-up contribution for an annual contribution amount of $19,000.
3) Those who have a 401(k), 403(b), most 457 plans and government plans such as the Thrift Savings Plan can contribute an additional $2,000 a year for a total of $22,500 (up from $20,500 in 2022). Those age 50 or older can make a catch-up contribution of $7,500 this year (up from $6,500) for an annual total of $30,000.
4) There are some contribution changes for your tax-advantaged health accounts. Starting in 2023, those eligible with an FSA (Flexible Spending Account) can put away a total of $3,050. Eligible single workers with an HSA (Health Spending Account) can contribute $3,850 for the year and those eligible with a family plan can do $7,750 in total. Those age 55 or older can contribute an additional $1,000 for the HSA catch-up contribution.
Make sure to consult your tax advisor to discuss how you could benefit from increased savings.
If you have any questions, please reach out to your WorkOptional Team directly.
By Marc D. Langva, CFP®, Founder & CEO at WorkOptional
What if I told you the world map you have been looking at your entire life is inaccurate? You would say “Marc your crazy!” But it’s true. The global map we all grew up with is called the Mercator map, which was created to make navigation easier while sailing. The map on the left is called the Peters Projection map; this map, unlike the Mercator map, more accurately represents the size, scale, and location of the Earths continents. It turns out that Africa is fourteen times larger than Greenland!+ View Full Article
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Source: Unshakeable • Who Can You Really Trust? Chapter 5 • by Tony Robbins
It is difficult to get a man to understand something
when his salary depends on his not understanding it.