401k, TSP increase for 2023

[rennigade]

2023 max for 401k/TSP is $22,500. A $2000 increase from last year. It's the biggest increase in history. Wish they would increase Roth IRA contributions.

[kork13]

Well, the IRA limits did also go up to $6500. So both account types got limit increases of 8-9% this year. The increases are based on annual inflation numbers (automatically, since 2009). The problem for IRAs is that the baseline for those inflation increases was absurdly low. I remember back in 2006 when I started my Roth IRA, the limit was $4k/yr. Back when they were created in 1975, the limit was $1500/yr, which to my knowledge didn't go up until the 2000s. So it's just been low from the get-go.

[disneysteve]

Well, the IRA limits did also go up to $6500. So both account types got limit increases of 8-9% this year. The increases are based on annual inflation numbers (automatically, since 2009). The problem for IRAs is that the baseline for those inflation increases was absurdly low. I remember back in 2006 when I started my Roth IRA, the limit was $4k/yr. Back when they were created in 1975, the limit was $1500/yr, which to my knowledge didn't go up until the 2000s. So it's just been low from the get-go.

It was $2,000 for many years that I recall. It always annoyed me because I didn't have any employer-sponsored plan until 2016 which is why we have such a large taxable portfolio. Even when it rose to $5,000, that's still not very much when you're earning 6 figures.