{"id":316,"date":"2022-12-21T18:44:52","date_gmt":"2022-12-21T18:44:52","guid":{"rendered":"https:\/\/www.cahabawealth.com\/insights\/?p=316"},"modified":"2024-07-24T15:42:20","modified_gmt":"2024-07-24T15:42:20","slug":"getting-ready-for-the-new-year","status":"publish","type":"post","link":"https:\/\/www.cahabawealth.com\/insights\/2022\/12\/21\/getting-ready-for-the-new-year\/","title":{"rendered":"Getting Ready for the New Year"},"content":{"rendered":"\n

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12\/2022<\/p>\n\n\n\n

As we begin wrapping up the 2022 tax year and planning for 2023, we wanted to make note of the announcements the IRS recently made for the 2023 tax year. In a year that was highlighted by soaring inflation putting pressure on taxpayers and their families, the IRS made unprecedented changes to the retirement plan limits and raised the income thresholds for each tax bracket. The government hopes to stimulate economic activity by allowing Americans to keep more of their earnings and increase their retirement contributions. Here are the important changes to know going in to the New Year:<\/strong><\/p>\n\n\n\n

Retirement Plan Limits<\/strong><\/p>\n\n\n\n

<\/th><\/th><\/th><\/tr><\/thead>
<\/td>2023 Limits<\/strong><\/td>2022 Limits<\/td><\/tr>
401(k)\/403(b)\/457(b) Elective Deferrals<\/td>$22,500<\/strong><\/td>$20,500<\/td><\/tr>
Traditional and Roth IRA<\/td>$6,500<\/strong><\/td>$6,000<\/td><\/tr>
Catch-Up Contribution (plans other than SIMPLE plans)<\/td>$7,500<\/strong><\/td>$6,500<\/td><\/tr>
SIMPLE Plan Employee Deferrals<\/td>$15,500<\/strong><\/td>$14,000<\/td><\/tr>
SIMPLE Plan Catch-Up Contributions<\/td>$3,500<\/strong><\/td>$3,000<\/td><\/tr>
Plan Maximum Annual Contribution \u2013 Defined Contribution Plans<\/td>$66,000<\/strong><\/td>$61,000<\/td><\/tr>
Maximum Annual Benefit \u2013 Defined Benefit Plans<\/td>$265,000<\/strong><\/td>$245,000<\/td><\/tr>
Compensation Limit under Section 401(a)(17)<\/td>$330,000<\/strong><\/td>$305,000<\/td><\/tr><\/tbody>
(Source: www.irs.gov<\/a>)<\/em><\/td><\/td><\/td><\/tr><\/tfoot><\/table><\/figure>\n\n\n\n

Health Savings and Health Flexible Spending Accounts<\/strong><\/p>\n\n\n\n

<\/th><\/th><\/th><\/tr><\/thead>
<\/td>2023 Limits<\/strong><\/td>2022 Limits<\/td><\/tr>
 HSA \u2013 Annual Contribution Limits<\/strong><\/td><\/tr>
   Self-Only Coverage<\/td>$3,850<\/strong><\/td>$3,650<\/td><\/tr>
   Family Coverage<\/td>$7,750<\/strong><\/td>$7,300<\/td><\/tr>
   Catch-up Contributions (age 55 or older)<\/td>$1,000<\/strong><\/td>$1,000<\/td><\/tr>
FSA \u2013 Annual Contribution Limits<\/strong><\/td><\/tr>
   Self-Only Coverage<\/td>$3,850<\/strong><\/td>$3,650<\/td><\/tr>
   Family Coverage<\/td>$7,750<\/strong><\/td>$7,300<\/td><\/tr><\/tbody>
(Source: www.irs.gov<\/a>)<\/em><\/td><\/td><\/td><\/tr><\/tfoot><\/table><\/figure>\n\n\n\n

Standard Deductions<\/strong><\/p>\n\n\n\n

<\/th><\/th><\/th><\/tr><\/thead>
<\/td>2023 Limits<\/strong><\/td>2022 Limits<\/td><\/tr>
Single<\/td>$13,850<\/strong><\/td>$12,950<\/td><\/tr>
Married Filing Jointly<\/td>$27,700<\/strong><\/td>$25,900<\/td><\/tr>
Head of Household<\/td>$20,800<\/strong><\/td>$19,400<\/td><\/tr><\/tbody>
(Source: www.irs.gov<\/a><\/em><\/td><\/td><\/td><\/tr><\/tfoot><\/table><\/figure>\n\n\n\n

Other Changes for 2023<\/strong><\/p>\n\n\n\n