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2023 IRS Retirement Contribution Increases

At SageSpring, we believe preparing for the future is one of the most important things you can do—especially when it comes to your finances. And one of the best ways to prepare for your future is by investing a portion of your income into retirement accounts such as 401ks and IRAs. But when it comes to investing, there’s a limit on how much you can put in each year. Those are called IRS contribution limits. 

The 2023 IRS contribution limits for both 401k and IRA accounts have recently been announced. Knowing your 401k 2023 contribution limits and IRA contribution limits for 2023 will be a huge help to you as you plan out your fiscal year.

IRS Contribution Limits for 2023

Inflation has affected almost every part of our lives. From gas to groceries and even how far the dollar will go. Thankfully, the IRS has taken this into account for 2023 and recently released contribution limits for retirement accounts.

401k 2023 Contribution Limits

This coming year, the IRS has increased 401k, 403b, most 457 plans, and the Thrift Savings Plan contribution limits by $2,000. That means individuals can contribute up to $22,500 to their retirement plans for 2023. If you’re on a catch-up plan (and over 50-years-old), you can contribute an extra $7,500 to your accounts bringing the total limit to $30,000 for individuals. If you’re on a SIMPLE plan, you can contribute up to $15,500 along with $3,500 if you’re on a catch-up plan as well.

IRA Contribution Limits 2023

In 2023, individuals can contribute up to $6,500 to their Roth or Traditional Roth IRA plans. This is an increase of $500 from 2022. If you’re over 50 years old, you can contribute an extra $1,000 on a catch-up contribution plan for a total of $7,500.

Phase-Out Limits for 2023

If you have a workplace retirement plan that you’re regularly contributing to, you may be susceptible to phase out limits depending on how much you make and how you decide to file.

Traditional IRA:

  • If you’re married and filing jointly, (and under a workplace plan), your phase out range will be for an income of $116,000 to $136,000.  
  • If you’re single and also covered by your workplace plan, your phase out range will be for an income of $73,000 and $83,000.
  • If you contribute to an IRA and are married to someone covered by a workplace retirement plan, your income range is $218,000 and $228,000.
  • If you’re married filing separately and also covered by a workplace retirement plan, your phase out range will be between $0 and $10,000 (and won’t have a cost-of-living-adjustment).

Roth IRA: 

  • If you’re single or the head of your household, your income limit is between $138,000 and $153,000. 
  • If you’re married and filing jointly, your income limit is between $218,000 and $228,000.
  • And if you’re married but filing separately (and making contributions to a workplace retirement plan), your phase out income limit is between $0 and $10,000.

Saver’s Credit:

  • If you’re married and filing jointly, your income phase-out limit is $73,000.
  • If you’re filing as a head of household, your phase-out limit is $54,750.
  • If you’re single or married and filing separately, your phase-out limit is $36,500.

For more information on 2023 IRS Retirement contributions limit increases and phase-out limits, visit: https://www.irs.gov.

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Jeffrey T. Dobyns

CFP®, CLU, CHFC

President, SageSpring | Financial Advisor, RJFS 
615-861-6102

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Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.