Updated Retirement Plan Contribution Limits 2023
The IRS has published the 2023 contribution limits for your 401k, IRA, and other retirement plans. Now is a great time to review your contributions to ensure you are making the most of your retirement plans. Here are a few key items to remember as you make your 2023 contributions:
· It is usually best to make your 401k contributions throughout the year rather than ‘front-loading’ your contributions. To contribute the maximum amount to your 401k divide the maximum contribution by your salary and enter the resulting percentage as your 401k contribution rate.
· 2021 IRA Contributions and SEP IRA Contributions must be made before you file your 2021 tax return or April 15 – whichever is earliest.
- SEP IRA contributions are also limited to 20% of business net income