Dear Clients and Friends of Blue Summit,
As a reminder, here are the 2023 limits for IRA and 401k contributions.
The annual IRA contribution limit is $6,500 in 2023 ($7,500 if age 50 or older). The IRA contribution limits apply to your combined traditional and Roth IRA contributions. This means if you have a Roth IRA and a traditional IRA, your contributions to both cannot exceed the $6,500 limit in 2023.
The deadline for 2023 contributions is April 15, 2024
Higher incomes can affect Roth IRA eligibility. Higher incomes and/or Employer-sponsored retirement plans can affect Traditional IRA deductibility. These are outlined in the below tables.
For the 2023 tax year, individuals can contribute up to $22,500 to their 401(k), 403(b), Thrift Savings Plans, and most 457 plans. An additional $7,500 is allowed if age 50 or older.
For anyone with HSA (Health Savings Accounts), the contribution limits have increased from $3,650 in 2022 to $3,850 in 2023 for single coverage and from $7,300 in 2022 to $7,750 in 2023 for family coverage.
Looking ahead to 2024, the contribution limits for IRA and 401ks will increase modestly by $500.
We hope you find this information helpful and let us know if you have any questions.
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