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
Oct 22, 2026
No one likes to think bad things will happen. But what would happen to your business if there was a fire in your office? Read through to learn why having a disaster recovery plan in place can give you peace of mind.
Oct 21, 2026
Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for the ordinary and necessary costs of starting a SEP, SIMPLE IRA or qualified plan (like a 401(k) plan.) Read through to see how your business can benefit.
Oct 20, 2026
Human resources and payroll departments lacking strong internal controls are vulnerable to cybercrimes. This is not just a tax-season problem. Read through for IRS warnings on HR and payroll tax scams that continue to plague businesses.
Oct 19, 2026
Terminating employees before they reach an important work-related milestone can result in legal consequences on your end. Don't find yourself in hot water! Read through to see how at-will employment works.
Sep 24, 2026
Employers are painfully aware that they face a 21st-century skills shortage. Companies are bent on hiring a "new collar" workforce to keep up with advances in technologies like artificial intelligence and automation. Read through to learn about an untapped resource.
Sep 23, 2026
If you're having a problem with the IRS, you have rights! For one, you don’t have to go it alone. You are allowed to have an expert in your corner. Read through for details on the regulations that protect you.
More News & Press can be found in our Archive.
