Dec 15, 2022 2023 Key Financial Changes

  • Social Security recipients are getting an 8.7% increase for their 2023 benefits
  • The Medicare Part B premium is decreasing from $170.10 to $164.90 per month
  • The annual exclusion for gifts is increasing to $17,000 from $16,000 per year per individual
  • The limitation on deferrals for 401(k), 403(b), and most 457 plans is increased to $22,500 for 2023, up from $20,500 in 2022
    • The catch up for those over age 50 was increased to $7,500 from $6,500 so if you are maxing out your plan and over age 50, you can contribute $30,000 in 2023
    • If you are maxing out your retirement plan, this is a good time to make sure the percentage you are contributing to your plan will max it by 2023 year-end
  • IRA and Roth IRA Contribution limit increase to $6,500 per individual plus the $1,000 catch up for those over age 50
  • Simple IRA Contributions increase from $14,000 to $15,500
    • The catch up contribution for those over age 50 increases from $3,000 to $3,500
  • HSA Contribution limit is increasing to $3,850 from $3,650 for an individual and $7,750 from $7,300 for a family
  • The IRS made other inflation adjustments to tax brackets, standard deductions, and other thresholds. You can find the details here: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

 

Sources:
https://www.irs.gov/newsroom/taxpayers-should-review-the-401k-and-ira-limit-increases-for-2023#:~:text=The%20amount%20individuals%20can%20contribute,up%20from%20%2420%2C500%20for%202022.

Disclosure:
Leonard Rickey Investment Advisors is not a Tax Firm. Please review with your tax professional prior to implementing changes.

Company News

Introducing our Kirkland Office!

Charles Schwab and TD Ameritrade Update

Welcome, Glenn!

Welcome, Vicky Aguilar!

We Can’t Help Falling in Love, Can You?

Market Commentary

Debt Ceiling: Should Investors Worry?

2023 1st Quarter Investment Commentary

Market Update: February 2023

2022 4th Quarter Investment Commentary

2022 3rd Quarter Investment Commentary

Retirement Planning

The 4 Changes from SECURE Act 2.0 You Should Know for 2023

Medicare Open Enrollment for 2023 Begins October 15th

Social Security Benefit Increase of 8.7% for 2023

The Huge Cost of Doing Nothing

Student Loan Update

Tax Planning

Form 5498

Reminder as you Prepare your 2022 Taxes

2022 1099 Release Information

2023 Key Financial Data

The 4 Changes from SECURE Act 2.0 You Should Know for 2023

Cyber Security

Cybersecurity 101 – 2022 Update

Cybersecurity 101

New Changes to Web-Portal Password Requirements

Equifax Data Breach Update: Make a claim today

Cybersecurity 101

Important Disclosures

Leonard Rickey Investment Advisors, PLLC (“LRIA”), is an SEC registered investment adviser located in the State of Washington. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of LRIA, please contact LRIA or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).

This is provided for general information only and contains information that is not suitable for everyone. As such, nothing herein should be construed as the provision of specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that the views and opinions expressed herein will come to pass. This newsletter contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein and take no responsibility therefore.

Any projections, forecasts and estimates, including without limitation any statement using “expect” or “believe” or any variation of either term or a similar term, contained here are forward-looking statements and are based upon certain current assumptions, beliefs and expectations that LRIA considers reasonable or that the applicable third parties have identified as such. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions or beliefs underlying the forward-looking statements will not materialize or will vary significantly from actual results or outcomes. Some important factors that could cause actual results or outcomes to differ materially from those in any forward-looking statements include, among others, changes in interest rates and general economic conditions in the U.S. and globally, changes in the liquidity available in the market, change and volatility in the value of the U.S. dollar, market volatility and distressed credit markets, and other market, financial or legal uncertainties. Consequently, the inclusion of forward-looking statements herein should not be regarded as a representation by LRIA or any other person or entity of the outcomes or results that will be achieved by following any recommendations contained herein. While the forward-looking statements here reflect estimates, expectations and beliefs, they are not guarantees of future performance or outcomes. LRIA has no obligation to update or otherwise revise any forward-looking statements, including any revisions to reflect changes in economic conditions or other circumstances arising after the date hereof or to reflect the occurrence of events (whether anticipated or unanticipated), even if the underlying assumptions do not come to fruition. Opinions expressed herein are subject to change without notice and do not necessarily take into account the particular investment objectives, financial situations, or particular needs of all investors.

For additional information about LRIA, including fees and services, please contact us for our Form ADV disclosure brochure using our contact information herein. Please read the disclosure brochure carefully before you invest or send money.