401k Contribution limits increased for 2023

The IRS has increased the contribution limits for 401k plans in 2023 by the largest ever due to the high rate of inflation. The new limit for 401k plans will be $22,500 for 2023.

The 401k catchup contribution limit for those 50 years or older will be increased by $1,000 to $7,500 in 2023.

Contribution limits for IRA's will be increased by $500 to $6,500 for 2023. Catchup IRA contribution limits for those 50 years or older will not increase (currently $1,000).

Source: IRS Retirement Topics-Contribution Limits