2023 Increased Contribution Limits

Throughout 2022, the one word that’s been top of mind for most people has been “inflation.” We’ve felt it throughout our daily lives and across every major category we can think of — groceries, gas, rent — just to name a few.

The good news in all this is that the IRS has taken notice and has increased contribution limits for retirement accounts going in 2023- giving us the opportunity to set aside even more money for our long-term goals.

If you currently max out your 401(k) or IRA and don’t update your contributions beginning in January, you are leaving money on the table.

The new contribution limits for 2023 are:

“401(k) Limit Increases to $22,500 for 2023, IRA Limit Rises to $6,500.” Internal Revenue Service, IRS.gov, 21 Oct. 2022, https://www.irs.gov/newsroom/401k-limit-increases-to-22500-for-2023-ira-limit-rises-to-6500.

If you are 50 years or older, you can also add additional “catch up” contributions to these amounts as well.

“401(k) Limit Increases to $22,500 for 2023, IRA Limit Rises to $6,500.” Internal Revenue Service, IRS.gov, 21 Oct. 2022, https://www.irs.gov/newsroom/401k-limit-increases-to-22500-for-2023-ira-limit-rises-to-6500.

Unfortunately, we’ve seen many people who still haven’t updated their ongoing contribution amounts since the last time these numbers were adjusted (2019 for IRAs and back at the start of 2022 for 401(k)s).

If you intend on maxing out these accounts going forward, don’t make that same mistake. Your future self will thank you for it.

We’re all about action here at Kennedy Financial Group, we ask that you contact us to discuss if the following are appropriate for you :

1. If you make ongoing contributions to max out your IRAs (whether Roth or Traditional), please give us a call or send us an email to let us know you’d like to increase these before December 1st. This will ensure there’s enough time before 2023 for these changes to take effect.
2. If you make ongoing contributions to your 401(k), go online to your retirement plan website or contact your HR department to let them know you want to adjust these contributions for next year. Be sure to do this before the new year so your company’s payroll makes the change in time.
   

Let us help you go into 2023 confident that you are better positioned for your retirement goals.

From all of us here at KFG, we hope you enjoy the upcoming holidays with your family and loved ones and wish you the best as we close out this year.

_________________________________________________________________________ Securities offered through LPL Financial,Member FINRA/SIPC. Investment advice offered through HighPoint Advisor Group, a registered investment advisor.

HighPoint Advisor Group and Kennedy Financial Group are separate entities from LPL Financial.

Steven Fronrath is solely an Investment Advisor Representative of HighPoint Advisor Group, and not affiliated with LPL Financial.

The content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

The investment strategies mentioned may not be suitable for everyone. This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice.

Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations

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