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 Neal Freyman
Published by Morning Brew | October 31, 2018
Wake Me Up When October Ends
Can you really blame Wall St. for cueing up Mariah Carey?
“Last month Barron’s published their annual Top 1,200 advisors in the country. This list recognizes the largest “producers” from the large Wall Street firms. Even the terminology at those firms is interesting. Producer implies that you are creating something…in this case it’s revenue from selling products and services to your clients. One specific paragraph really resonated with me and reminded me why it was so important to leave that environment.”