The new year brings new IRS retirement contribution limits, which means the opportunity to contribute more toward your retirement through annual limit increases and catch-up contributions.
Regardless of how much you can put towards retirement, this is an important time of year to review your current contributions and identify if there is an opportunity to contribute more.
Below are a few important contribution limit changes for 2023:
2023 Contribution Limit Increases
If you intend to max out 401(k) contributions for 2023, it could be beneficial to make changes early to spread out contributions versus contributing more later in the year. If you opt for contributing to your 401(k) through bonus programs, ensure your employer plan allows for any 401(k) match through that option; some may only cover 401(k) match through regular paycheck deferral. Additionally, the sooner you contribute to your retirement accounts, the more time compound interest can impact your long-term retirement funds.
While the 2023 contribution limit increases provide additional opportunities to save for retirement, every investor's financial situation is different. If you have questions about the best course of action for your situation, please reach out, and we can create a plan to take advantage of these opportunities.