IRS Announces 2023 Limits for Defined Contribution Plans
The Internal Revenue Service (IRS) has announced the yearly contribution limits for 403(b) and 457(b) plans for 2023.
A defined contribution plan allows you to save for retirement while reducing taxation on your current income. You can view the MCPS 403(b) & 457(b) Retirement Savings Plans video or visit the Fidelity website for more information.
Effective Jan. 1, 2023, the yearly contribution limits for the 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 old at any point during the calendar year to contribute additional funds to the plans, will increase from $6,500 to $7,500 per plan. Therefore, participants who are 50 and older can contribute up to $30,000 to each plan, starting in 2023.
You can change your contribution amount at any time by logging in to the Fidelity website or by calling Fidelity at 1-800-343-0860.