--- title: The IRS Will Let You Stash More Money in Your 401(k) and IRA Next Year description: Prompted by inflation, the IRS is increasing the 401(k) and IRA contribution limits for 2023 — meaning you can save more for retirement. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2022-10-21T17:53:11.000Z' modified: '2024-04-17T12:57:33.000Z' section: Retirement tags: - News - Taxes word_count: 306 canonical: https://money.com/401k-ira-contribution-limits-2023/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Close-up of a hand inserting coins into a jar](https://img.money.com/2022/10/News-IRS-Increase-Contributions-2023.jpg?crop=0px%2C219px%2C2432px%2C1368px&quality=85) Good news: You’ll be able to save even more for retirement in 2023. The IRS [announced](https://www.irs.gov/pub/irs-drop/n-22-55.pdf) Friday that it will increase next year's contribution limits for [401(k)s](https://money.com/what-is-a-401k-rollover/) and other tax-advantaged retirement plans. The changes are prompted by [inflation](https://money.com/items-prices-rising-faster-than-inflation/): Each year, the Treasury Department is legally required to increase the contribution limits as living costs rise. And this year, living costs have certainly soared. Consumer prices were 8.2% higher in September than they were a year earlier. The IRS increases follow significant [changes to the 2023 tax brackets](https://money.com/tax-brackets-2023-inflation/) and standard deduction that were also linked to the United States' record-setting inflation. Soaring prices also led to the largest cost-of-living [increase in Social Security checks](https://money.com/social-security-checks-cola-increase-2023/) since 1981. ## 401(k) and IRA contribution limits for 2023 Starting next year, Americans will be able to contribute $22,500 to their 401(k) plans, up from [$20,500 this year](https://money.com/401k-contribution-limit-2022/) — a bump of nearly 10%. That limit also applies to a few other types of retirement plans, including 403(b)s, the majority of 457 plans and the federal government’s Thrift Savings Plan. Workers age 50 and older will be able to contribute an extra $7,500 in “catch-up” contributions, an uptick from the $6,500 they could save this way in 2022. That means older workers can stash a total of $30,000 in their eligible accounts next year. The IRS is also increasing the contribution limits for [individual retirement accounts, or IRAs](https://money.com/what-is-an-ira/). For both traditional and Roth IRAs, workers can contribute $6,500 to these accounts in 2023. That's $500 more than they could this year. One thing that hasn't changed is the limit on IRA "catch-up" contributions made by older Americans. 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