The IRS has announced a record increase in the amount of money people can contribute to their 401(k)s and other tax-deferred retirement plans next year
Starting next year, you will be allowed to contribute up to $22,500 into your 401, 403, most 457 plans or the Thrift Savings Plan for federal employees. That’s $2,000 – or roughly 9.8% – more than the current $20,500 federal contribution limit. The jump is largely due to inflation, to which the contribution limits are indexed.
But next year, more people will be able to take advantage. To put any money in a Roth in 2023 your modified adjusted gross income must be below $153,000 . That’s up from $144,000 currently. For traditional IRAs, to get to deduct at least some of your contributions your modified AGI must be below $83,000 next year, up from $78,000 this year.
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