In 2023, the IRS has raised the contribution limit for retirement plans like 401(k), 403(b), and 457 plans to $22,500. This means you can save more for your retirement.
If you have a workplace retirement plan, be aware of the phase-out ranges for traditional IRA contributions. For singles, it's between $73,000 and $83,000, and for married couples filing jointly, it's between $116,000 and $136,000.
Roth IRAs offer tax-free withdrawals in retirement. In 2023, singles can contribute between $138,000 and $153,000, while married couples can contribute between $218,000 and $228,000.
If you work in a small business, the SIMPLE IRA is your friend. You can now contribute up to $15,500 in 2023, up from $14,000 in 2022.
Even though not a retirement plan, Health Savings Accounts (HSAs) help cover medical costs in retirement. In 2023, you can contribute $3,850 for self-only coverage or $7,750 for family coverage.
These IRS changes provide opportunities to plan your retirement according to your dreams and financial goals.
Keep an eye on IRS updates to make the most of these changes.
Increase your contributions to retirement plans to secure your financial future.
Consider Roth IRAs for tax-free withdrawals in retirement.
Use HSAs to cover medical costs during your retirement years.