The theme this week on the Retirement Quick Tips Podcast is: New Retirement Plan Limits For 2023

Today, I’m talking about the massive increases for workplace retirement plans in 2023.

If you work for a company that sponsors a workplace retirement savings plan, the IRS announced the largest ever increase in retirement plan contribution limits for 2023 thanks to high inflation this year.

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500, up from $20,500.

If you’re covered by a SIMPLE IRA, you can contribute up to $15,500 in 2023, up from $14,000 this year.

The biggest mistake I see people make…[not paying attention to these changes and making the necessary adjustments to payroll contributions]

• Don’t assume that it will happen automatically. I’ve had people tell me that they’re maxing out, only to find out that they were maxing out…like 5 years ago, but haven’t made the adjustments since and lost out on tens of thousands of additional contributions and growth that they otherwise would have had in their retirement account.
• Find out what steps you need to take now, so your contribution increases can go into effect in January

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance