IRA regular contribution limit will increase to $6,500
On October 21, 2022, the Internal Revenue Service issued Notice 2022-55 announcing retirement plan cost-of-living adjustments (COLAs) applicable to 2023. After several years without an increase to the traditional and Roth individual retirement account (IRA) regular contribution limit, there will be a $500 increase for 2023. Additionally, income thresholds that determine traditional IRA deductibility, Roth IRA eligibility, and saver’s tax credit eligibility will slightly increase. Those limits as well as simplified employee pension (SEP) limits, elective deferral limits, and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA deferral limits for 2023 are as follows: