Today the IRS released IRS Notice 2022-55, which contains retirement account inflation-adjusted income tax figures for the 2023 tax year. Notable adjustments include:
- The IRC §401(k) employee contribution limit is increased to $22,500 (up from $20,500 for 2022) and the catch-up contribution limit for taxpayers aged 50 or older is increased to $7,500 (up from $6,500), thus increasing the total 401(k) contribution for taxpayers age 50 and over to $30,000 for 2023 ($22,500 regular contribution + $7,500 catch-up contribution);
- The IRA contribution limit is increased to $6,500 (up from $6,000 for 2022). The $1,000 IRA catch-up contribution limit is not subject to cost-of-living adjustments and remains unchanged;
- The income phaseout range for taxpayer’s making contributions to a ROTH IRA is set as follows:
- For single filers and HOHs: $138,000 to $153,000 (up from $129,000 and $144,000 for 2022);
- For MFJ: $218,000 to $228,000 (up from $204,000 and $214,000);
- MFS: Remains at $0 to $10,000 (not subject to cost-of-living adjustments);
- The SIMPLE contribution limit is increased to $15,500 (up from $14,000); and
- The SEP contribution limit is increased to $66,000 (up from $61,000).
The Notice is available at:
Sign up for Spidell’s 2022/23 Federal and California Tax Update to spend one day with us and be ready for tax season. Click here for a list of in-person seminar locations.
Sign up for Spidell’s Flash E-mail — Get breaking news delivered to your inbox, plus other free analysis and information for tax professionals. Join our community and stay at the top of your game. Click here to sign up.