The Internal Revenue Service has announced contribution and benefit limits for 2023.
The limit on contributions by employees who participate in 401(k)s, 403(b)s, Sec. 457 plans, and the federal government’s Thrift Savings Plan have been increased to $22,500. The catch-up contribution limit for employees age 50 and over has been increased to $7,500. The overall limit for these plans increased from $61,000 to $66,000 for 2023. For plans like the Board of Retirement which allow after-tax contributions, this allows employees to save more.
The limit on annual contributions to an individual retirement account (IRA) increases to $6,500 for 2023. The additional catch-up contribution limit for individuals age 50 and older is not subject to an annual cost-of-living adjustment (COLA) and remains $1,000.
Details on these and other retirement-related cost-of-living adjustments for 2023 are in Notice 2022-55 and the IRS’ 2023 IRA Limit Announcement.
To find out more about your different retirement contribution options with the Board of Retirement, click here. If you would like to increase your contributions to your Board of Retirement plan, fill out a new salary reduction agreement and turn it into your employer (and then send us a copy). If you have any questions, you can contact our office at 877-767-7738.