In this portion of our 2023 Tax Planning series, we walk through two important notes for retirement planning and taxes.
A Note from Us: At Akif CPA, we specialize in tax return preparation for individuals, families, and businesses. We are currently accepting new clients. Please contact us today if you require tax help.
It’s important to take note of contribution limit changes for retirement plans in 2023. Changes have also come to minimum distribution ages. We outline both below:
2023 Retirement Account Contribution Limits
| Account Type | Contribution Limit | Additional for ages 50+ |
| 401(k)/403(b) | $22,500 | +$7,500 for ages 50 and over |
| IRA | $6,500 | +$1,000 for ages 50 and over |
| Roth IRA | Subject to Income Limits | +$1,000 for catch up contributions |
| SEP IRA | Subject to Income Limits Based on Self-Employed Income |
2023 Required Minimum Distributions
The SECURE 2.0 Act has raised the minimum age at which you must begin taking Required Minimum Distributions from IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts to 73 for 2023.
There are some stipulations, and if you turned 73 for 2023 there may be required beginning dates that allow for tax savings. Please speak with a CPA for peace of mind.
