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
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