What is the Maximum 401(k), 403(b) or 457 Contribution in 2023?

As the cost of living continues to rise, so does the need to save for retirement. Here at Infinium, we are seeing many investors more worried today than ever before.

“Will I run out of money in retirement?” is clearly the #1 question we are getting today.

For many people, this means contributing the maximum to an employer-sponsored retirement plan. With the introduction of the new retirement plan contributions for 2023, employees now have a greater opportunity to achieve their retirement savings. The maximum deferral has increased from $20,500 in 2022 to $22,500 this year, making it easier for individuals to save more towards their retirement. For those of us over the ripe age of 50, we can contribute an extra $7,500, which is up from the previous limit of $6,000.

Employers should also be aware of the new changes and encourage their employees to make use of them. Not only will this allow individuals to boost their contributions towards retirement savings but also help them achieve financial stability in the long run. Furthermore, employers can also benefit from this as it helps them build a better relationship with their employees and improve employee satisfaction.