The Internal Revenue Service (IRS) announced the new amount individuals can contribute to their 401(k) plans in 2023. In 2023, individuals can contribute $22,500 to their 401(k) plans, a $2,000 increase from 2022.
Additional Information
The new contribution limit in 2023 applies to all employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. For more information regarding retirement plans, click here. The government enforces limits on how much money employers and employees can contribute to their retirement plans. There is a maximum limit for all retirement plan types. However, some limits change each year.
Get The Support You Need!
Are you a business owner considering offering your employees a 401(k) plan? Or perhaps you already do and are looking for ways to improve it. Offering retirement plans is essential to recruiting and retaining quality employees, but it’s a benefit with a lot of complexity and risk. Tom Smith, GMS' Director of Retirement Services, explains, "Offering a retirement plan is a great benefit for business owners to be able to provide employees. From a cost standpoint, it's typically one of the more economical benefits. A 401(k) gives business owners flexibility in terms of plan design options to meet their business needs."
In addition, a handful of retirement plans change the contribution limits each year. When you partner with GMS, we help you:
- Cut costs and reduce stress
- Save you time
- Offer benefits your employees want the most
Contact us to get started today!