Key updates to contribution limits and other tax items for 2023

Young couple planning and looking for comparison information on their decision to buy a new home together

With the 2022 tax season coming to a close, we always like to take this opportunity to highlight any new contribution limits for a variety of retirement and other investment accounts that may be taking effect in the new tax year. 

For 2023, new contribution limits include:

  • 401(k) / 403(b) – $22,500 + additional $7,500 if over age 50
  • IRA / Roth IRA – $6,500 + $1,000 if over age 50
  • SIMPLE IRAs – $15,500 + $3,500 if over age 50
  • Health Savings Account (HSA): Individual Health Insurance Plan – $3,850 + $1,000 if over age 55; Family Health Insurance Plan – $7,750 + $1,000 if over age 55

      Beyond these updated limits, other notable changes / adjustments taking effect in 2023 include:

      • The annual gift exclusion increased to $17,000 this year. This is the maximum amount that one individual can give another individual each year without filing a gift tax return.
      • The maximum earnings subject to Social Security tax (6.2%) is $160,200.
      • The base monthly Medicare Part B premium actually decreased to $164.90. If income is above $97,000 for Single taxpayers or $194,000 for Married Filing Jointly taxpayers, an Income Related Monthly Adjustment Amount (IRMAA) is added to the base premium for Part B and Part D. There are ways to appeal the IRMAA if a life-changing event has occurred.

        As always, reach out to your Galecki team members if you have any questions on any of these or other tax-related items for 2023.




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