IRS Announces 2023 Limits for Defined Contribution Plans
The Internal Revenue Service (IRS) has announced that, effective January 1, 2023, the yearly contribution limits for 403(b) and 457(b) plans will increase from $20,500 to $22,500 per plan.
The age 50 Catch-Up Provision, which allows any participant who is at least 50 years of age at any point during the calendar year to contribute additional funds to the plans, will increase from $6,500 to $7,500 per plan. This means participants who are 50 and older can contribute up to $30,000 to each plan in 2023. You can change your contribution at any time by logging in to the Fidelity website or by calling Fidelity at 1-800-343-0860.
Are you saving with a 403(b) or 457(b) plan yet?
Defined contribution plans allow you to save for retirement with pretax dollars, which reduces the taxes you pay on your current income. You do not pay taxes on that income or on your investment earnings until you withdraw the money. Once you choose how much to contribute, your contributions are taken directly from your pay and deposited into your retirement savings plan account.
Learn more about 403(b) and 457(b) plans and how to start saving for retirement on the Fidelity website or by calling Fidelity at 1-800-343-0860.