The Internal Revenue Service announced the 2023 contribution limits for retirement plans.
The salary deferral limit for 401(k) and 403(b) plans will have a $2,000 increase to $22,500, and the catch-up provision for participants aged 50 or over will increase from $6,500 to $7,500. That means participants age 50 and over may have salary deferrals totaling $30,000.
The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.
Annual IRA contributions increased to $6,500 from $6,000, and the catch-up provision remained unchanged at $1,000.