2022-2023 IRS limitations for Optometrists

KEY POINTS:

  • (1) 401(k) and 403(b) Increase to $22,500 along with catch-up contribution to $7,500 if you're 50yo+

  • (2) Total Contribution Limit for 401K with for all you super savers increase to $66,000.

  • (3) Trad and Roth IRA limits finally increase to $6,500 after many years, with catch up still the same at $1,000 (50yo+)

  • (4) Backdoor Roth IRA max income limits increase to $153,000 (single) or $228,000 (married)

  • (5) SEP IRA increase to $66,000 from $61,000

  • (6) SIMPLE IRA increase to $15,500, a boost of $1,500

  • (7) HSA increase to $3,850 (single) & $7,750 (family) with FSA increase to $3,050 (single/family)

  • (8) Social security max taxable wage base increase to $155,100 in 2023

With inflation rising at all time highs, it definitely seem that the IRS is adjusting quite drastically for most of these accounts for 2023!

While all of these limits might seem higher, remember that it is mainly keeping up with inflation, which the consumer index is estimated at 8%. in 2022. Please use these important limit to adjust your financial planning for 2023 especially for any retirement plans!

If you have any questions about your retirement plan or IRS limits, please contact your tax professional.

 

Want to learn how to plan for Retirement? Check out our The Optometrist's Guide to Retirement

Need help with your Tax? Check out our Recommended Tax Experts 

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About DatBuiOD

Dr. Bui is an optometrist at the Apple Wellness Center in the heart of Silicon Valley. He has a deep passion for ocular disease and healthcare technology. He started his career with $220,000 of student debt and was able to finish this massive debt in 5 years using budgeting and personal finance strategies, along with aggressive investing. He is a big advocate for passive index funding with a small portfolio toward individual technology stocks. Lastly, he wants to help all new doctors and high-earning professionals navigate toward wealth and financial independence.

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