The theme this week on the Retirement Quick Tips Podcast is: New Retirement Plan Limits For 2023

Today is the day after Thanksgiving, so I hope if you’re listening to this episode the day it comes out, you had a relaxing and fun day with those you love most, and you’ve recovered from your food coma. 

My 2 favorite Thanksgiving foods are pumpkin cheesecake, which I’ve made for our Thanksgiving feast the last several years, and the leftovers from dinner. 

When I was a kid, our day-after Thanksgiving tradition was to go cut down our Christmas tree. These days I like to wait until at least early December to get our tree. And this year, I might finally buy a fake tree, which doesn’t feel right, but I don’t know if I have it in me to vacuum tree needles multiple times a week while 8 1/2 months pregnant this year. 

Instead on the day after Thanksgiving, I like to put my fall decorations away and get everything out in preparation for Advent and Christmas. And the other thing I always do is make a casserole with Thanksgiving leftovers. If you haven’t made a casserole with leftovers before, I highly recommend it. It’s super easy, and it’s one of my favorite dinners to make and eat! 

Ok, so back to today’s topic which is Traditional and Roth IRA changes for 2023. It’s not just the contribution rate that’s changing for 2023, but due to inflation, the income limits are going up as well. 

If you’re eligible to contribute to a Traditional IRA or a Roth IRA, the contribution limit goes up $500 for 2023 - from $6000 to $6500. As I mentioned a couple days ago the catchup contribution if you’re over 50 for these accounts isn’t changing. If you missed that episode and you want to take advantage of catchup contributions, be sure to go back and have a listen because catch up contributions for most workplace retirement plans like 401k and SIMPLE IRA accounts ARE going up next year. 

In addition to the contribution limit increase in Traditional and Roth IRA accounts, the income limit is also going up. 

It’s important to keep in mind that your eligibility to contribute to these accounts is based on income, and for Traditional IRAs it also depends on whether you or your spouse if you’re married are also covered by a retirement plan at work.  So you’ll want to do some homework here to see if you’re eligible. 

The best resource is the IRS website, which has clearly laid out the rules. For example, as long as your household income is below $228,000 for married couples filing jointly, it doesn’t matter whether you have a retirement plan at work or not. You can still max out your Roth contributions. That’s not the case though for Traditional IRA accounts, especially if you or your spouse are covered by a retirement plan at work.

So take the time to research the rules and how they apply in your individual situation, so you can take advantage of these updated contributions limits wherever they apply to your situation. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance