DES MOINES — Many people are reviewing their retirement plan contributions as we approach the end of the year.
IRS spokesman Christopher Miller says a recent update allows you to put away more toward retirement. “The amount that individuals can contribute to their 401K plans and most other workplace retirement plans has increased for 2023 to $22,500, and that’s up from $20,500 dollars for 2022,” Miller says.
He says there’s also a change for individual retirement accounts or IRAs. “The limit on the annual contribution to an IRA increased to $6500 dollars for 2023 — and that’s up from $6000 in 2022,” he says.
Miller says it’s important to review your plan to be sure you are putting enough money away. “This is a good time to know well what am I going to put into my IRA, what am I going to put into my 401K plan at work,” Miller says.
Miller says if you make the adjustment heading into the new year, you will be able to take advantage of the increased limits for the full year.