What to Know About Entering Into Retirement in 2023
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by Brooklynn Chandler Willy | Jan 11, 2023 | Brooklynn Chandler Willy, Retirement Planning
Although it is straightforward to start planning for your retirement, it is also essential to remember that there are various moving parts you need to take into account. Proper knowledge about these changes can help you get the most out of your plan. To help you out, here are 몭ve things you should know about retirement planning in 2023. New Limits on 401(k) A workplace retirement plan like a 401(k) is popular among Americans. You can set aside money for your 몭nancial needs through a plan which allows people to invest a portion of their paycheck. You can also choose to spread the funds among various options, and you will pay taxes on the earnings once you retire. The limit is adjusted yearly; in 2022, it was $20,500; in 2023, it was $22,500. Also, those 50 and above can make catch-up contributions. In 2022, the catch-up was $6,500, and in 2023, it will be $7,250. This will allow individuals with a total of $30,000 to make contributions. IRA Limits An individual retirement account is a good choice if you cannot access a workplace retirement plan due to certain factors. An IRA is a type of retirement plan that works