The Internal Revenue Service has increased the amount individuals can contribute to their 403(b) plans in 2023.
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500, up from $20,500 in 2022.
The limit on annual contributions to an IRA increased to $6,500, up from $6,000.
If you’re turning 50 or older in 2023, you’re eligible to tax defer an additional $7,500 into a voluntary 403(b) account and another $7,500 into a voluntary 457(b) account.
During the three years prior to your year of retirement, or year of eligibility of retirement, you may be eligible to double the current year limit. In 2023, this might allow you to tax defer up to an additional $45,000 into a 457(b) account.
You may only use one 457(b) catch-up provision in a calendar year.
For more information on the increases, click here.
For information on how to increase your contributions, click here.