Investors will be able to contribute up to $22,500 in 401(k) plans and $6,500 in IRAs in 2023

Investors will be able to contribute up to ,500 in 401(k) plans and ,500 in IRAs in 2023


If you’re eager to save more for retirement in 2023, there’s good news from the IRS, which just announced higher limits for your annual 401(k) plan and individual retirement account contributions.

The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also apply to 403(b) plans, most 457 plans and Thrift Savings Plans.

The agency has also increased contribution limits for IRAs, allowing investors to save $6,500 in 2023, up from $6,000 in 2022. The catch-up deposit will remain at $1,000.

More from Personal Finance:
IRS: Here are the new income tax brackets for 2023
How much you can earn and still pay 0% capital gains taxes in 2023
IRS bumps up estate tax exclusion to $12.92 million for 2023

The boost for IRA contributions is significant, as the cap hasn’t changed since 2019, limiting savings for Americans without a workplace retirement plan.

And more Americans may also qualify for Roth IRA contributions, with the adjusted gross income phaseout range rising to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.

Here's how to pay 0% tax on capital gains



Source

Business class+? Delta says segmentation is coming to high-end cabins
Business

Business class+? Delta says segmentation is coming to high-end cabins

Nurphoto | Nurphoto | Getty Images Delta Air Lines is studying new types of airplane tickets — this time in the premium cabins at the front of the plane. Airlines spent years slicing up their coach cabins, from extra legroom seats to bare-bones basic economy fares that don’t allow changes or include a seat assignment. […]

Read More
Space startup Varda raises 7 million in funding to make drugs in orbit
Business

Space startup Varda raises $187 million in funding to make drugs in orbit

Pavlo Gonchar | Lightrocket | Getty Images Space startup Varda announced on Thursday that it has raised $187 million in Series C funding, led by venture capital firms Natural Capital and Shrug Capital, to continue advancing drug manufacturing in space. The latest round included participation from Peter Thiel, Lux Capital, Khosla Ventures and Caffeinated Capital. […]

Read More
How family offices are betting on the sports boom from fantasy apps to pickleball courts
Business

How family offices are betting on the sports boom from fantasy apps to pickleball courts

Key Points A third of investment firms of the ultra-rich have invested in sports, according to a new family office survey by BNY Mellon. While billionaire sports-team buyouts get the headlines, family offices are increasingly investing in adjacent assets like live-viewing venues and betting apps. Here’s how the family offices of ultra-rich sports team owners […]

Read More