WHEN SHOULD I EXPECT MY TAX FORMS? | What You Need to Know

For the 2023 tax year, the following are limits set by the IRS for contributions to your retirement plan(s).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is $22,500 for the 2023 tax year.

The limit on annual contributions to an IRA for the 2023 tax year is $6,500 ($6,000 from 2019 to 2022). The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains at $1,000.

Under the SECURE Act passed in December 2019, significant changes were made to IRA and retirement plan rules.  A few of the most impactful changes include:

• Repeal of the maximum age for making traditional IRA contributions at age 70½.
• Increase in the Required Minimum Distribution (RMD) beginning age from age 70½ to age 72 for retirement plans and IRAs.
• Partial elimination of the popular “stretch IRA” strategy.

More changes were recently made under the SECURE 2.0 legislation that was passed in late December 2022, including:

• Increase in the RMD beginning age from age 72 to age 73, starting on January 1, 2023. The age will be adjusted again in 2033 to age 75.
• Decreased penalty from 50% to 25% for missed RMD distributions (and further reduced to 10% if the missed RMD is corrected within two years).
• New Roth options for catch-up contributions, employer contributions, and SEP and SIMPLE IRAs.
• Creation of a nationwide “lost and found” database for retirement accounts.
• Qualified Charitable Distribution (QCD) limit of $100,000 will be indexed for inflation, allowing taxpayers to donate more funds annually from their IRAs. Additionally, IRA owners will now be able to make a one-time distribution, up to $50,000, to fund a charitable remainder trust or charitable gift annuity.
• New (but limited) rules allowing rollovers for unused 529 plan funds into Roth IRAs
• And many more!

(Source: IRS.gov )