2023 IRS CHANGES

As of October 21st, 2022, the Internal Revenue Service (IRS) released a notice informing the changes for the 2023 contribution limits. Some numbers to highlight are listed below:

Personal Finance:

Numerous positive changes are coming in 2023! The increase in retirement plan deferral and catchup limits will help savers to inch closer to a secure retirement. In 2023, a saver age 50+ can defer up to $30,000 for retirement! When coupled with higher HSA savings limits, a married couple age 50+ with an HSA-qualifying health plan will have access to an additional Pre-Tax savings opportunity of $6,450. In addition to the increases in the income levels for marginal tax brackets, proper planning could lead to meaningful tax savings.

Another item to note is the change to the gift tax exclusion, which is increasing from $16,000 per individual to $17,000. That means every person is now able to give up to $17,000 in gifts— including cash, property, and material goods— to someone else without having to file a gift tax form.??

For 2022, also important to note that for those living in New Jersey, NJ now allows taxpayers to deduct 529 plan contributions of up to $10,000 per year from state taxable income. The benefit would only be available to households with an annual income of $200,000 or less. To qualify, families must contribute to the?NJ Better Education Savings Trust (NJBEST)?529 plan.?

Head over to read our full blog post on the 2023 IRS Changes.