The IRS has released new guidelines for the 2023 Contribution Maximums for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.
Retirement Plan Maximum Contributions:
IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.
Contribution Highlights for 2023:
- $22,500 - The contribution maximum for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan.
- $330,000 - The amount of your compensation that can be taken into account when determining employer and employee contributions.
- $6,500 - The contribution maximum for employees who participate in IRAs
- The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2023.
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Additional information can be found on the IRS website.
2023 Social Security Cost of Living Adjustment (COLA) Rates
On October 13th the SSA announced an increase of 8.7 percent for Social Security payouts. This is the highest increase in over four decades. On average, this increase will translate to a $146 bump in Social Security benefits starting in January 2023.
If you're looking to start a plan, or just get more information about contribution maximums, don't hesitate to get in contact.
