Feb 07, 2023
.jpg)
Also increasing is the catch-up contribution limit for employees aged 50 and over who participate in the above plans. This limit has increased to $7,500, up from $6,500. Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan who are 50 and older can contribute up to $30,000, starting in 2023.
The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000.
IRAs are also going up. The limit on annual contributions to an IRA increased to $6,500, up from $6,000. The IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000.
Phase-out ranges adjusted
The IRS has also reminded taxpayers that they can deduct contributions to a traditional IRA only if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. However, if neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply. The IRS has listed the new ranges on its site. The IRS has also announced Roth IRA changes, which again, are listed on the IRS site.
The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $73,000 for married couples filing jointly, up from $68,000; $54,750 for heads of household, up from $51,000; and $36,500 for singles and married individuals filing separately, up from $34,000.
Full details are available in IRS Notice 2022-55.
©2023
Jul 31, 2025
Employers conduct exit interviews with departing employees during the final days of offboarding. If done right, these interviews can be a source of valuable information to help the company improve.
Jul 30, 2025
One of the most important ways for an employee to feel valued by their company is to receive a salary increase. This also helps with retention! Read through for ideas on deciding how much of a salary increase should be awarded to your employees.
Jul 29, 2025
Business owners lose about $50 million a year to employee theft and fraud, according to the U.S. Chamber of Commerce. Read through for a glimpse at some of the many ways employees could be stealing from you.
Jul 28, 2025
The recently passed law has a lot of complex provisions, which have led to a lot of misinformation! Fortunately, the IRS has just published a guide to many of the new rules. Read through to read about them, so you can discuss them with your tax advisor.
Jul 03, 2025
When you provide workers with additional benefits on top of their regular pay, some may be taxable. As the rules can get complicated, it pays to familiarize yourself with the requirements. Read through for an overview of which benefits are taxable.
Jul 02, 2025
Disputes over unpaid work time often arise from tasks performed outside official hours — for example, answering emails, traveling between jobsites or changing into work clothes. Employers must understand when these activities count as compensable work. Read through to learn how exempt and nonexempt statuses affect wage obligations.
More News & Press can be found in our Archive.
