October 22, 2022
By : Quick Insurance Guru
In 2023, the Internal Revenue Service announced inflation-linked barriers to tax bracket and standard deduction payments.
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And for the people who save money in the accounts, the tax agency is announcing the retirement increase.
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On Friday, the IRS said people will be able to contribute up to $22,500 to 401(k) accounts and $6,500 to an IRA in 2023.
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401(k), this is an increase of about 10% from the 2022 contribution limit of $20,500. And that's 8% higher for IRAs by 2022.
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In addition, this tax year 2023 income tax bracket and standard deduction worked out to 7%.
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When the IRS increased the 401(k) contribution limit last year, it increased by about 5%.
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Rita Assaf, Vice President of Retirement Products at Fidelity Investments, said recently we are experiencing. The IRS released the 2023 contribution limit.
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In 2023 this contribution limit applies to 401(k)s - plus 403(b) plans, most 457 plans. This is great for those aged 50 and above.
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The IRS said the catch-up contribution limit has been increased from $6,500 to $7,500.
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In 2023, employees age 50 and older can withdraw $30,000 from their accounts for retirement.
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Retirement planning was $68,000 and $78,000 in 2022. This will increase to $73,000 and $83,000 in 2023.
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According to the IRS, in 2023 the income limit will be $73,000 for married couples, and $54,750 for the head of household. and up to $36,500 for individuals.
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