The New 401(k) Rules For 2023 (Important)

  • You can defer $22,500 into your 401(k) for 2023, up from the $20,500 limit in 2022.
  • It may be easier to achieve your 2023 retirement savings goals by boosting contributions now, experts say.
  • But you need to know how your company’s 401(k) match works before front-loading deposits.

If you’re eager to boost your retirement savings, there’s good news for 2023: higher 401(k) contribution limits. And now is the time to adjust your deferrals, financial experts say.

You can funnel $22,500 into your 401(k), 403(b) and other such plans for 2023, up from the $20,500 limit in 2022. Employees 50 and older can contribute an extra $7,500, up from $6,500 in 2022.

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In 2021, roughly 14% of investors maxed out employee deferrals, according to 2022 estimates from Vanguard, based on 1,700 plans and nearly 5 million participants.

www.cnbc.com/2023/01/03/how-to-take-advantage-of-higher-401k-contribution-limits-for-2023.html

 

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