If you are looking to save for retirement through a 401k plan, it’s important to know the contribution limits set by the IRS. In 2023, the annual contribution limit for 401k accounts is $22,500 for individuals under the age of 50. This means that you can contribute up to $22,500 from your pre-tax income to your 401k account in 2023.

For individuals aged 50 and older, there is a catch-up contribution limit of an additional $6,500. This means that if you are over the age of 50, you can contribute a total of $29,000 to your 401k account in 2023. This catch-up contribution is designed to help older individuals boost their retirement savings as they near retirement age.

It’s important to note that these contribution limits are for traditional 401k plans, and there are also other types of retirement accounts, such as Roth 401ks, with different contribution limits. It’s always a good idea to consult with a financial advisor to make sure you are maximizing your retirement savings and taking advantage of all available tax benefits.

It’s never too early to start saving for retirement, and contributing to a 401k plan is a great way to do so. By staying informed about the contribution limits for 2023 and taking advantage of any catch-up contributions available to you, you can set yourself up for a comfortable retirement.

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