What you need to know about 401(k) and Social Security changes in 2023. 👇🏻
Here’s an overview of the contribution limits for 2023.
👉🏻Annual contributions to 401(k), 403(b) and most 457 plans will increase to $22,500. Catch-up contributions for people aged 50+ will increase to $7,500. That means if you’re over age 50 you can contribute up to $30,000 this year.1
👉🏻Annual contributions to traditional and Roth IRAs will increase to $6,500. Catch-up contributions remain at $1,000 — if you’re over 50 you can contribute up to $7,500 this year.2
👉🏻Income and phase-out ranges for retirement plan contributions are also increasing, allowing more people to take advantage of these tax-advantaged savings options.
Here’s an overview of important changes to Social Security benefits for 2023.4
👉🏻Social Security recipients will see their monthly payments increase by 8.7% starting in January 2023. This is the largest Social Security cost of living adjustment in 40 years.
👉🏻The average retiree benefit will increase by approximately $146 per month.
👉🏻The maximum Social Security monthly benefit for those retiring at full retirement age is increasing from $3,345 to $3,627.
👉🏻The maximum earnings subject to Social Security taxes is increasing from $147,000 to $160,200.
👉🏻Workers who claim Social Security benefits before their full retirement age can earn up to $21,240 in 2023 without facing a reduction in benefits.
👉🏻The average benefit for spouses, widowed and disabled workers is also increasing.
👉🏻Medicare Part B premiums, typically deducted from Social Security benefits, are decreasing by approximately 3% for 2023 for the majority of participants.
For more information about estimating your benefit amounts, Timing and Claiming Strategies Schedule a Call Today or visit us at MannaWealthManagement.com
#socialsecurity #401k #TSP #federalretirement #tax #retire