What are the new 2023 qualified retirement plan limits? We break down everything you need to know.
Hello welcome to Arista Advice! Question of the week is: "Paul, what are the new 2023 qualified retirement plan limits that were raised?" Last week there were some big jumps and some great, great news that all those who are saving for retirement and preparing for the big retirement date are able to put more money into their qualified retirement plans. Here's just a few of the big numbers that changed for 2023.
The qualified retirement plan for 401(k)s, 403(b)s 457s are going from $20,500 to $22,500, a two thousand dollar increase and a 10 percent jump. The catch-up provision goes from $6,500 to $7,500. Also, the IRA limits, go from $6,000 to $6,500, but the IRA catch-up contribution stays the same. Also, a really big increase for 2023 is the federal estate tax exemption. It's going from $12,060,000 to $12,920,000. That is a really big increase and really good news for those who are preparing for retirement and those who are in retirement, who have earned income that want to put money towards a future expense.
Now the not so good news - yes, they increased the highly compensated employees from $135,000 to $150,000, and also the social security wage base that they tax on social security went from $147,000 to $160,000. But overall, it's great news and wonderful to see some big jumps in some of the key areas that you can save for retirement.
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