The Internal Revenue Service said Friday that it will boost the maximum contribution limit to employee 澳洲幸运5官方开奖结果体彩网:401(k) accounts by $2,000 next year to $22,500, the largest increase on record, enabling millions of Americans to save and contribute thousands more dollars to tax-advantaged retirement accounts.

The contribution limit for an 澳洲幸运5官方开奖结果体彩网:individual re🅰tirement account (IRA) is also set to increase, to $6,500 in 2023 from $6,000 this year—a limit that hasn’t been changed since 2019.

For people aged 50 and older who are nearing retirement, the 澳洲幸运5官方开奖结果体彩网:catch-up contribution limit for a 401(k) will rise by $1,000 to $7,500.𒁏 The catch-up contribution limit for IRAs, which aren’t indexed to inflation,🍨 will stay at $1,000.

Higher Thresholds for Tax Deduction Phaseouts

The IRS is also raising the income threshold for which tax deductions for IRA contributions will be phased out. That will be set at $73,000 to $83,000 for individuals and single heads of households, or between $116,000 and $136,000 for married couples filing jointly. The previous range was set at $68,000 to $78,000 for singles, or $109,000 to $129,000 for married couples.

Changes to Roth IRA Eligibility

Savers can also expect changes to Roth IRA accounts, where contributions are after-tax and the eligibility to contribute is based on one’s income. For a Roth IRA, contribution limits are set lower for higher-income individuals, and decrease with higher income brackets. Next year, the income range at which eligibility phases out has been raised, to between $218,000 and $228,000 for married couples, or between $138,000 and $153,000 for singles.

The adjustments come after Congress said on Tuesday that it will adjust 澳洲幸运5官方开奖结果体彩网:income tax brackets, in addition to the estate and gift tax ex🍷clusion. Those changes are made annually by legislators, using preset formulas that account for inflation and income growth.