2023 Retirement Plan Contributions Limits

The following is a summary of the 2023 retirement plan contribution limits:

Traditional IRAs:    The annual contribution limit to an IRA increases to $6,500 (up from $6,000.) Catch-up contributions for those aged 50 and above remains at $1,000.

Traditional IRA Phase-Out:    Phase-out income ranges result in a reduced, or eliminated, income tax deduction for IRA contributions. The income ranges are as follows:

Single taxpayer covered by a workforce qualified plan, the phase-out range is increased to between $73,000 (up from $68,000) and $83,000 (up from $78,000);

Married couples filing jointly, if the spouse who makes the IRA contribution is covered by a workforce qualified plan, the phase-out range is increased to between $116,000 (up from $109,000) and $136,000 (up from $129,000);

For an IRA contributor who is not covered by a workplace qualified plan and who is married to someone who is covered, the phase-out range is increased from $218,000 (up from $204,000) and “$228,000 (up from $214,000);

For a married individual filing a separate tax return, who is covered by a workplace qualified plan, the phase-out range is not subject to a cost-of-living adjustment, and remains between $0 and $10,000.

Roth IRA Phase-Out:    The income phase-out range for a taxpayer who makes contributions to a Roth IRA is increased to between $138,000 (up from $129,000)  and $153,000 (up from $144,000)  for singles and heads of household. For married couples who file jointly, the income phase-out range is increased to between $218,000 (up from $204,000) and $228,000 (up from $214,000.)

SIMPLE IRA:     The amount an individual can contribute to a SIMPLE IRA is increased to $15,500 (up from $14,000.)

Saver’s Credit:     The income limits for the Retirement Savings Contributions Credit for low and moderate income employees are-

For married couples who file jointly, $73,000 (up from $68,000);

For heads of households, $51,000 (up from $51,000); and

For singles and married individuals who file separately, $36,500 (up from $34,000).

401(k), 402(b) and Most 457 Plans:     The annual contribution limit increases to $22,500 (up from $20,500.) Catch-up contributions are increased to $7,500 (up from $6,500.)