5 min read December 20, 2022
What are the 2023 retirement contribution limits and income restrictions?

Updates to max retirement account contributions for 2023 give you more options to boost your savings.

Photo of man reviewing his retirement contributions limits with their financial advisor.

Putting away as much as possible—in as many ways as you can—for the future may have huge long-term value. In 2023, IRS changes to max retirement account contributions make it possible to put more money in your savings.

Max 2023 retirement contribution amounts at a glance

The IRS increased 2023 contribution limits for 401(k)s, 403(b)s, and IRAs. Some retirement plans have lower limits, so check the details of your allowable contributions. Generally, your human resources or benefits department is a good place to start.

Account 2023 contribution limit
Employer-sponsored plan such as 401(k), 403(b) $22,500
Individual retirement account (IRA) $6,500
Roth IRA $6,500

Catch-up contributions for 401(k)s and 403(b)s for people age 50 and older also increased to $7,500, but not for IRAs and Roth IRAs. Those remain at $1,000.

Graphic of a thumbtack.Tip:If your employer offers a matching contribution in its 401(k) plan, aim to set aside at least enough to get that match.

Updates to tax deduction limits and income limits for IRA and Roth IRA contributions

If you’re already contributing to a retirement savings plan at work, such as a 401(k) or 403(b), you can also contribute to an IRA. But there are some caveats.

While there’s no phase-out income limit for IRAs—generally anyone making any amount of income can open and contribute to an IRA—the same isn’t true for Roth IRAs (which are made with after-tax dollars). And if you’re hoping to deduct your IRA contributions on your taxes, income limitations apply here too. For 2023, those income ranges increased for both traditional IRAs and Roth IRAs. Get the details on IRA contribution and deduction limits on the IRS website.

Phase-out income limits

  • IRA: None
  • Roth IRA: Single/head of household: $138,000 to $153,000; married filing jointly: $218,000 to $228,000

Tax deduction limit

  • IRA: Full, partial, or no deduction based on income level and retirement plan
  • Roth IRA: Not deductible

Increased 2023 HSA contribution limits

The IRS also increased HSA contribution limits for 2023 for both individuals and families (see below). As a reminder: A health savings account (HSA) helps those with high-deductible health plans save taxes on money earmarked for medical expenses not covered by the plan. But unlike a flexible spending account (FSA), the assets you contribute to an HSA can be rolled over each year. Plus, an HSA offers a triple tax advantage: Money put in isn’t taxed and grows tax-free, and you’re not taxed when you withdraw funds for qualified medical expenses.

Coverage type 2023 HSA limit
Self coverage $3,850
Family coverage $7,750

Next steps

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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.