Join the Conversation

Tis the season for planning! As you do so check out the attached report which itemizes the 2023 annual limits related to various planning vehicles like retirement plans, 401k’s, Social Security FRA, etc. Key highlights are listed below.

Key Contribution Limit Changes & Info:

IRA/Roth IRA $6,500 from $6,000
IRA/Roth IRA Catch-Up Contribution (50+) $1,000 (unchanged)
Roth IRA Income Phaseout $153,000 from $144,000 ($228,000 from $214,000 if married)
401k/403b/457 Elective Deferrals $22,500 from $20,500
401k/403b/457 Catch-Up Contribution (50+) $7,500 from $6,500
HSA $3,850 from $3,650 ($7,750 from $7,300 if married)


Income Tax Brackets:

Ordinary income tax brackets will increase by roughly 7% across the board, and standard deductions will as well ($12,950 to $13,850 for a single filer and $25,900 to $27,700 if married filing jointly).  To illustrate the impact, a married couple claiming the standard deduction in 2023 can earn $218,450 and remain in the 22% tax bracket whereas in 2022 that threshold was $204,050.

Gift and Estate Tax:

The annual gift tax exclusion, which is the amount you can give to an individual without having to file a gift tax return and potentially pay gift tax, will rise from $16,000 to $17,000 ($32,000 to $34,000 for a married couple).  Additionally, the estate tax exemption will rise from $12.06M to $12.920M, giving wealthy families another $860,000 to pass to heirs free of estate tax.

Social Security: 

The cost-of-living-adjustment (COLA) for 2023 Social Security benefits will be 8.7%, by far the largest increase since the early 1980s.  Combined with last year’s 5.9%, the previous post-1980s high, those collecting Social Security will see a roughly 15% increase in 2023 benefits compared to 2021.

If you have questions about how these changes might affect you and your financial plans don’t hesitate to reach out to an advisor today!


Disclaimer: HoyleCohen is a fiduciary acting on behalf of our clients. We are a fee-based investment advisor and do not receive commissions for any investment strategies or products that may be discussed. This information is intended for informational purposes only. No decisions regarding investment strategies should be made based solely on this information and it should not be interpreted as investment advice. Any investment decisions should be discussed with your Advisor. Finally, all investments carry the risk of loss, including the permanent loss of principal and past performance is not a guarantee of future results.


Look beyond financial planning. Ask about a life plan.

Pin It on Pinterest

Share This