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
Nov 20, 2025
It's a controversial topic: How much paid time off should you give your employees? Smart companies give more than the minimum, knowing that some employees value time off even more than a salary raise. Read through for some thoughts on a good vacation policy.
Nov 19, 2025
Employee reviews are often seen as monotonous, checklist-based meetings that may or may not end with a raise. Read through for six quick tips to elevate your company's culture through a smarter employee review process.
Nov 18, 2025
As it does every year, the IRS has announced a variety of changes to retirement plans. In brief, it has raised the limits on how much savers can put away, but there are many other adjustments. Read through for a summary of the key provisions.
Nov 17, 2025
Are you worried about keeping your payroll processes secure when partnering with a payroll provider, professional employer organization or employer of record? Read through for insight into how you can improve your security measures while adhering to regulatory compliance.
Oct 23, 2025
Curious about key person insurance? It's essentially when the company acts as the beneficiary and pays the premiums. Read through to learn how this insurance product can help your business.
Oct 22, 2025
Are you working with freelancers? It's important to understand how to pay them, which all starts with classifying them based on their employment status. Read through to learn how to avoid misclassification.
More News & Press can be found in our Archive.
