Phoffert
Answers to your questions about 2023 limits on individual taxes
Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2023. Due to inflation, many amounts have been raised more than in past years. Below are some Q&As about tax limits for this year. Note: Not all tax figures are adjusted annually for inflation and some amounts only change when new laws
2023 limits and thresholds for 401(k)s and other qualified retirement plans
The IRS recently announced the 2023 dollar limits and thresholds for qualified retirement plans, reflecting the latest cost-of-living adjustments. Here are some relevant amounts to be aware of: Contribution limits for 401(k)s and other defined contribution plans. The annual limit on contributions will increase to $22,500 (up from $20,500) for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified Employee Pension plans (SARSEPs). The annual limits will rise to $15,500 (up from $14,000) for Savings Incentive Match Plans for Employees (SIMPLEs) and SIMPLE IRAs. Catch-up contributions. The annual limit on catch-up contributions for individuals age 50 and over will
