This video “2023 Contribution Limits | 401(K)s, Roth IRAs, Traditional IRAs, HSAs, FSAs & HRAs” will go through the following:
0:00 Intro
1:39 2023 401(k) Contribution Limit, 2023 403(k) Contribution Limit (including most 457 plans the federal government’s Thrift Savings Plan)
3:27 2023 SIMPLE IRA Contribution Limit
4:08 2023 Roth IRA Contribution Limit & 2023 Traditional IRA Contribution Limit, plus the income phase-out ranges
10:50 2023 Saver’s Credit Limit &
13:24 2023 HSA Limit, 2023 FSA Limit & 2023 HRA Limit
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2023 Retirement Contribution Limits:
Calculating MAGI:
2022 Roth IRA Contribution Limits:
2022 Traditional IRA Contribution Limits
2022 Saver’s Credit Income Limits
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2023 Contribution Limits: A Guide for 401(k)s, Roth IRAs, Traditional IRAs, HSAs, FSAs & HRAs
It’s crucial to keep up with the latest rules and regulations surrounding retirement and healthcare accounts. Understanding the contribution limits for various accounts is essential for financial planning and maximizing your savings potential. In this article, we’ll break down the contribution limits for 401(k)s, Roth IRAs, Traditional IRAs, HSAs, FSAs, and HRAs for the year 2023.
401(k) Contribution Limits
The maximum 401(k) contribution limits for 2023 remain at $19,500, the same as in 2021 and 2022. However, individuals aged 50 and above can contribute an additional catch-up amount of $6,500, bringing their total contribution limit to $26,000. Keep in mind that these limits apply to both traditional and Roth 401(k) plans.
Roth IRA Contribution Limits
For Roth IRAs, the contribution limits will also stay the same as the previous years. In 2023, the maximum annual contribution remains at $6,000 for those below the age of 50. Individuals aged 50 and above can make an additional catch-up contribution of $1,000, making their total limit $7,000.
Traditional IRA Contribution Limits
The contribution limits for Traditional IRAs have not changed for 2023 either. Individuals under the age of 50 can contribute up to $6,000 per year to their Traditional IRA. Similar to Roth IRAs, those aged 50 and above have the option to contribute an extra $1,000 as a catch-up contribution, raising their total annual limit to $7,000.
HSA Contribution Limits
Health Savings Accounts (HSAs) are a tax-advantaged way to save for medical expenses. In 2023, the annual HSA contribution limit for individuals with self-only coverage under a high deductible health plan (HDHP) is set at $3,650, an increase of $50 from the previous year. For HSA-eligible individuals with family coverage under an HDHP, the maximum annual contribution jumps to $7,300, an increase of $100 from 2022. HSA owners aged 55 and older can contribute an additional $1,000 as a catch-up contribution.
FSA Contribution Limits
Flexible Spending Accounts (FSAs) allow employees to allocate pre-tax dollars for certain qualified medical expenses. The FSA contribution limit for 2023 will see a modest increase to $2,850, a rise of $50 compared to the 2022 limit of $2,800.
HRA Contribution Limits
Health Reimbursement Arrangements (HRAs) are employer-funded accounts used to reimburse employees for qualified medical expenses. The contribution limits for HRAs can vary, and it’s essential to refer to your specific plan documents to determine the allowable contributions.
In conclusion, understanding the contribution limits for retirement and healthcare accounts is paramount for effective financial planning. While the 2023 contribution limits for 401(k)s, Roth IRAs, Traditional IRAs, HSAs, and FSAs have remained relatively unchanged, it’s crucial to stay informed and take advantage of any catch-up contributions available. By maximizing your contributions, you can secure a more financially stable future and ensure you have sufficient funds to cover medical expenses. Always consult with a financial advisor or tax professional to ensure you adhere to the latest regulatory guidelines specific to your situation.
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Great info, Jen! Thanks. Love the grocery receipt analogy. Yes, sticker shock all around. Good thing I don't eat eggs anyway!
Great video! Will you be doing a video to explain all the new 401K changes that were part of the omnibus bill?
Hi Jennifer, great video to summarize all the thresholds. Very important to the upcoming year tax planning. Just an observation: when you show where to find your mAGI on 2021 tax return, for a second I thought you mean to use the 2021 mAGI to test the phase-out for 2022, I think it would be great to make it clear that the mAGI is within the same year, not based on prior year number.
Hi, awesome presentation. Where can we get the budgeting worksheet you mentioned in your previous youtube episode? thx in advance
Don't forget about a BACKDOOR ROTH. This works great if you are above the AGI limits. Have you done a video on the Backdoor option?
For HSA CATCHUP contributions….is this option based on THE YEAR you turn 55? Or must you be 55?
No mention of the backdoor Roth conversion!?
Thanks for posting! Excited to save more in 2023. Can you explain the best way to calculate one’s paycheck when contributing to a Roth 401(k)? I want to invest in my Roth 401(k) but need to make sure my paycheck covers my bills. Just curious on the best approach to do this manually. I cannot find a calculator online that do this. Also does it even make sense as I calculate I will be in a lower tax bracket come retirement. Curious if you have thoughts on this. Love your videos and how explain all so well! Thanks!
Good info. I wish they would raise the contribution limits for the dcfsa which hasn’t changed since I was kid.
Do you have any podcast recommendations? Is your YouTube channel in podcast format or is that on the roadmap?
Love your videos and style of presenting information clearly and bluntly.
I wish my employer offered HSA’s…I work in in healthcare industry with HMO but this year in 2023 I will max out a FSA but I wish it had a rollover feature to save for expensive dental procedures. Great video, love all your content.
Great video! I really like your I bond and T bill videos, but also really like how you break down the 401K, Roth, and Traditional IRA with income limits. You are an excellent teacher and presenter!
hopefully citizens can afford to put additional money into these accounts but as it stands, its a hard NO in almost 12% inflation
Isn’t it possible to do a backdoor Roth IRA if your income limit is above the income limits?
Great videos!! Always great info. On HSA’s: So reading the IRS literature (Pub 969) I found that one cannot contribute to (have) an HSA account if you have HDHP coverage and are also covered by your spouses non-HDHP medical plan. “Other health coverage. If you (and your spouse, if you have family coverage) have HDHP coverage, you can’t generally have any other health coverage. However, you can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan.” Although great to have an HSA, the rules around eligibility are a bit complex and may require a recharacterization of contributions if any contributions made if done when not actually eligible. At least that is what I’ve run into.
You have a great talent at explaining financial topics in an easy to understand and entertaining way. Thanks for posting!
Do you have to file your taxes AFTER maxing out your roth for the tax year? For example, I would like to do my taxes in february but will I still have until April to max out my Roth for 2022 tax year? Or if I am not able to max out my roth until April, do I need to wait to do my taxes at that time?
You are a great teacher. Please make a video on Certificates of Deposits which are reliable and pay good interest. There are many people who would be interested in them.
Love this video. It's just a right time. If I max out my 401K in 2022, would I contribute the Roth as well (Presume the income has not been phase out). Also I am expecting a video about the Traditional IRA to covert into the Roth (Backdoor). What are the requirements needed to pay attention?
Can't you just do a backdoor Roth IRA?
Point… HSA contributions are also exempt from payroll taxes! Know you mentioned "taxes" but just wanted to expand that it's not just income tax exempt:)
Crazy topic for you some day — but only if it interests you. Credits for electric vehicles. Especially issues such as … must you have earned income to take the E.V. credit? I hear "car people" talking about it, but it would be nice to hear "investment/tax people's" take on it. Thank you. Great podcast!
Yay, Diamond NestEgg!
Where's the turbo tax article link to calculate MAGI?
Should've brought up the backdoor Roth conversion!
How in the world one can save more into 401ks when cost of living is outrageous?
Where can we find the in between PHASE OUT amounts for ROTH IRA contributions for 2023? I have not been able to find those anywhere, Only the MIN and MAX caps.
Great video. Super clear and all in one place! I'd love to see a video on HSA & investing. I have an HSA. I am going to max it out this year…but would like to invest the money I don't use in the HSA. I don't like the options with Bank Of America and would like to transfer to my Fidelity HSA. I just don't know how to do that without the sum of the HSAs increasing past the limit? For example; I am not using all the 2022 funds in my HSA account. I'd like to transfer the surplus to my Fidelity HSA to invest as I see fit (end of this year). But how is the total between the 2 HSAs looked at by the IRS? I just can't get it straight in my head, and I'd like to do this transfer every year thereafter.
Thanks.! 🙂
Always great info..
First