IRS INCREASES IRA LIMITS FOR THE 2023 TAX YEAR

IRS INCREASES IRA LIMITS FOR THE 2023 TAX YEAR

IRS increases IRA limits for the 2023 tax year. In IRS Notice IR-2022-188, the IRS let taxpayers know that it was increasing the limit for the Individual Retirement Accounts for the 2023 tax year. Individuals can contribute up to $22,500, which is a $2000 increase from the $20,500 limit set for 2022. The IRS also published technical guidance regarding the cost of living adjustments affecting dollar limitations for pension plans and other retirement items for 2023. The contribution limits for employees participating in a 401(k), 403(b), most 457 plans and the Thrift Savings Plan went up to $22,500 from $20,500. The limit on annual IRA contributions went up to $6500 from $6000. The IRA catch up contribution limit for individuals aged 50 and over is not subject to an annual cost of living adjustment and remains $1000. IRS increases IRA limits for the 2023 tax year.RESOLUTION COMPANIES

The catch up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most all 457 plans, and the federal government's thrift savings plan is increased to $7500 from $6500. Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government's thrift savings plan who are 50 and over can contribute up to $30,000 starting in 2023. The catch up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased tp $3500 up from $3000. The income ranges for determining eligibility to make deductible contributions to traditional individual Retirement Arrangements (IRSs), to continue to ROTH IRAs, and to claim the Saver's Credit all increased for 2023.

TAX RESOLUTION SERVICES

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on the filing status and income. If you drew money out of a retirement account during the Covid crisis, call to see if you qualify for Tax Relief, using well regarded Tax Resolution Services. 1-888-689-7861