403 B IRA Contribution Limits 2023
Are you planning to save for your retirement? If so, the Internal Revenue Service (IRS) has an excellent retirement plan that could help you reach your retirement goals. It’s called the 403(b) IRA. This type of retirement plan is usually offered by educational institutions, non-profit organizations and certain religious organizations. It’s a great way to save for retirement, as there are no income limits and the contribution limits are generous.
The IRS sets the maximum amount of money you can contribute to a 403(b) IRA each year. The contribution limit for 2021 is $19,500. This limit is subject to change from year to year, so it’s important to stay up to date on the latest changes in order to maximize your retirement savings. Here is a look at the current contribution limit and what you can expect in 2023.
2021 Contribution Limits
The maximum amount you can contribute to a 403(b) IRA in 2021 is $19,500. If you’re age 50 or over, you can make an additional catch-up contribution of up to $6,500. So, if you’re age 50 or over, you can contribute up to $26,000 in 2021. If you’re under age 50, you have the option to make a Roth contribution, which is an after-tax contribution. The Roth contribution limit is the same as the regular contribution limit.
2022 Contribution Limits
The contribution limit for 2022 has not been announced yet. The IRS usually announces the contribution limits for the following year in October or November of the current year. So, we can expect the 2022 contribution limit to be announced sometime this fall. Until then, the 2021 contribution limit will remain in effect.
2023 Contribution Limits
While the IRS has not yet announced the contribution limit for 2023, we can make an educated guess based on historical data. Since the contribution limit has increased every year since 2015, it’s likely that the limit will increase again in 2023. We can expect the 2023 contribution limit to be at least $20,000, and possibly higher. We won’t know for sure until the IRS announces the official limit.
Take Advantage of the Contribution Limit
If you’re looking to save for retirement, the 403(b) IRA is an excellent option. The contribution limits are generous, and the IRS makes it easy to save for your retirement. It’s important to stay up to date on the contribution limits so you can maximize your retirement savings. The 2021 contribution limit is $19,500, and the 2022 and 2023 limits will be announced later this year.
The 403(b) IRA is a great way to save for retirement. The contribution limit for 2021 is $19,500, and the limits for 2022 and 2023 will be announced later this year. The contribution limit has increased every year since 2015, so it’s likely that the 2023 limit will be at least $20,000. If you’re looking to save for retirement, take advantage of the generous contribution limits and start saving today.