TAX TIP OF THE DAY| Spending Virtual Currency
IMPORTANT TAX FILING DATES | Keeping You Prepared and On Time
Tax Filing Deadline | Monday, April 17, 2023
2023 RETIREMENT PLAN LIMITS | As Set by the Internal Revenue Service
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.
(Source: IRS.gov )
2023 Tax Season Checklist
To prepare for the tax filing season, there are several things you should take into consideration.
Review our 2023 tax filing season checklist to plan accordingly.