On Oct. 18, 2022, the IRS announced the annual inflation adjustments for the 2023 tax year. As a result, many key tax provisions will increase by roughly 7% to account for higher than expected inflation.
With higher contribution limits and wider tax brackets, many filers will be able to remain in lower brackets and further control their tax burden in 2023.
If you are maxing out retirement and health savings accounts, be sure to adjust your contributions starting January 1, 2023, to account for the additional amount you can contribute in 2023.
2023 Tax Brackets – Married Filing Joint
2023 Tax Brackets – Single Filer
2023 Contribution Limits
- 401k - $22,500 if under age 50; $30,000 if age 50+
- SIMPLE IRA - $15,500 if under age 50; $19,000 if age 50+
- Solo 401k/SEP IRA - $66,000
- Traditional/ROTH IRAs - $6,500 if under age 50; $7,500 if age 50+
- Health Savings Account (HSA) - $3,850 individual/$7,750 family if under age 55; additional $1,000 if age 55+
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