Know Your Limit: 2023 Contribution Amounts

As we enter the fourth quarter it is important to make sure you are maximizing your retirement contributions for the 2023 tax season. Be sure to review your year-to-date deferrals so you can withhold the appropriate amounts from your gross pay or make the necessary deposits by the 2023 filing deadline.

Here is a quick summary of the various plan types and contribution limits:

401K

·        $22,500 if under age 50.

·        $30,000 if age 50 or over

 IRA

·        $6,500 if under age 50

·        $7,500 if age 50 or over

 Roth IRA

·        $6,500 if under age 50

·        $7,500 if age 50 or over

 Simple IRA

·        $15,500 if under age 50

·        $19,000 if age 50 or over

 Simplified Employee Pension Plan (SEP)

·        25% of compensation up to 66,000

Health Savings Account (can roll over from one year to the next)

·        $3,850 (self only)

·        $7,750 (family)

 Flexible Spending Account (use it or lose it)

·        $3,050

Retirement Topics - Contributions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions

Disclaimer: The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Jeffrey Kurtz CPA LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Jeffrey Kurtz CPA LLC prior to taking any action based upon this information. Jeffrey Kurtz CPA LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.