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The IRS announced Friday that it raised the 401(k) contribution limit in 2023 to $22,500, up from $20,500. This is a record increase of 9.8% and largely due to inflation.
The catch-up contribution for those over 50 years old will rise to $7,500 from $6,500. This means if you are over 50 you can contribute up to $30,000 in 2023.
Those saving for retirement in traditional and Roth IRAs will also see a boost next year. The amount that can be saved increases to $6,500 from $6,000. The catch-up contribution remains at $1,000.
