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2023 Annual Limits Relating to Your Accounts

by Michael Mooney, CFP®, MBA, Financial Advisor



As we are now into 2023, we wanted to make you aware of the updated Contribution/Income Limits (and related) as set forth by the IRS for this year. Each year, the IRS distributes this information after recalculating the amounts. Typically, each of these limits are indexed for inflation, and will rise accordingly. As inflation ticked up over the past two years, many of the limits below increased by significant amounts again in 2023.


Even though each item below is indexed for inflation, it is not an exact increase. The IRS typically uses round amounts (to the nearest $500 or $1,000), so some of these will only change every few years. For instance, the Annual Gift Tax Exclusion was increased by $1,000 for the second straight year in 2023 (to $17,000), after no changes over the previous four years.


If you normally contribute a fixed dollar amount into your workplace retirement account (such as making the maximum contribution into your 401K each year), you may want to contact your HR department to get that updated.


Please reach out to your Financial Advisor today with any questions.

· Qualified Plan Elective Deferrals (401(k), 403(b), 457) – Under 50 Years Old: $22,500

· Qualified Plan Elective Deferrals (401(k), 403(b), 457) – 50 Years or Older: $30,000

· Total Defined Contribution Plan (Employer + Employee): $66,000

· SEP IRA: $66,000

· SIMPLE IRA – Under 50 Years Old: $15,500

· SIMPLE IRA – 50 Years or Older: $19,000

· Traditional IRA – Under 50 Years Old: $6,500

· Traditional IRA – 50 Years or Older: $7,500

· IRA Contribution Deduction Phase Out for Active Participants:

o Single: $73,000-$83,000

o Married Filing Jointly: $116,000-$136,000

o Married Filing Separately: $0-$10,000

· Roth IRA – Under 50 Years Old: $6,500

· Roth IRA – 50 Years or Older: $7,500

· Roth IRA Contribution Phase Out for Active Participants:

o Single: $138,000-$153,000

o Married Filing Jointly: $218,000-$228,000

o Married Filing Separately: $0-$10,000


· Health Savings Account (HSA):

o Single – Under 55 Years Old $3,850

o Single – 55 Years or Older: $4,850

o Family – Under 55 Years Old: $7,750

o Family – 55 Years or Older: $8,750

· Federal Estate Tax Lifetime Gift Exemption: $12,920,000

· Annual Gift Tax Exclusion: $17,000


Please note that these limits apply to 2023 Contributions only; If you are still planning on making a Prior Year Contribution for 2022, such as for your Roth IRA, the 2022 limits will apply.


CAR-0123-00654

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