The Important Contribution Limits to Know in 2023
The beginning of the year is a great time to get acquainted with updated contribution limits. Whether you want to budget in additional contributions to keep maxing out plans or are new to building wealth, it's important to know these limits.
What are the important contribution limits to know in 2023? We outline several important limits below.
401(k), 403(b), and 457 Plans
| Plan Limits | 2023 | 2022 | Difference |
|---|---|---|---|
| Employee elective deferrals | $22,500 | $20,500 | +$2,000 |
| Employee deferral (age 50+) | $7,500 | $6,500 | +$1,000 |
| Contribution limit, all sources | $66,000 | $61,000 | +$5,000 |
| Cont. limit, all source (age 50+) | $73,500 | $67,500 | +$6,000 |
SIMPLE Plan
| Plan Limits | 2023 | 2022 | Difference |
|---|---|---|---|
| Employee deferral | $15,500 | $14,000 | +$1,500 |
| Catch-up (age 50+) | $3,500 | $3,000 | +$500 |
SEP Plan
| Plan Limit | 2023 | 2022 | Difference |
|---|---|---|---|
| Employer contribution | $66,000 | $61,000 | +$5,000 |
These plans have some trickier rules to follow regarding self-employed individuals' limits. Make sure to coordinate with your tax professional. | |||
Traditional and Roth IRAs
| Plan Limit | 2023 | 2022 | Difference |
|---|---|---|---|
| IRA/Roth Contribution | $6,500 | $6,000 | +$500 |
| Catch-up contribution (50+) | $1,000 | $1,000 | none |
Other Important Limits
| Plan Type/Limit | 2023 | 2022 | Difference |
|---|---|---|---|
| HSA: Single | $3,850 | $3,650 | +$200 |
| HSA: Family | $7,750 | $7,300 | +$450 |
| HSA Catch-up (age 55+) | $1,000 | $1,000 | none |
| Dependent Care FSA, family | $5,000 | $5,000 | none |
| Dependent Care FSA, married filing separately | $2,500 | $2,500 | none |
| Health FSA | $3,050 | $2,850 | +$200 |
You may also like:
Everything you need to know about your 403(b)
Can I contribute to both a 403(b) and 457 plan?