Save More for Retirement in 2023 Thanks to Higher IRA and 401(k) Contribution Limits
For anyone saving for retirement with a traditional or Roth IRA, the 2023 limit on annual contributions to their account goes up $500 – from $6,000 this year to $6,500 next year. That's an increase of 8.33%. The limit was stuck at $6,000 since 2019, but the steep inflation we've experienced lately finally gave it a boost. The additional IRA "catch-up" contribution for people 50 and over is not subject to an annual cost-of-living adjustment and stays at $1,000 for 2023 (for a total 2023 contribution limit of $7,500 if you're at least 50 years old).