Blog

Retirement savings and taxes are two things that we must navigate when saving for retirement. These two topics are forever changing and something we need to keep up with.

Retirement savings and taxes are two things that we must navigate when saving for retirement. These two topics are forever changing and something we need to keep up with.

Here are a few important numbers that may be beneficial for your retirement planning in 2023.

1. Thrift Savings Plan (TSP) contribution limit is increased to $22,500 with a catch up clause of $7,500 for employees age 50 or older.
2. IRA and Roth IRA contribution limits increase to $6,500 with a $1,000 catch up clause for people age 50 or older.
3. Income limit for contributing to a Roth IRA is phased out from $218,000 to $228,000 of Modified Adjusted Gross Income (MAGI).
4. Health Savings Account contribution limit is:
1. $3,850 single
2. $7,750 married
3. $1,000 catch up for people 50 or older
5. The Required Minimum Distribution (RMD) age increased to age 73.
6. The standard deduction when filing your taxes is:
1. $13,850 single filers
2. $27,700 for joint filers

There are plenty of other numbers that have changed for 2023 but these are some of the important ones that will impact federal employees. Probably the biggest change to note above is that the RMD date has been pushed back another year to age 73 versus 72, but if you’re considering delaying distributions until age 73 you might want to read this article first.

Brad Bobb, CFP® is the owner of Bobb Financial Inc, and an expert in retirement planning for federal employees. 

Schedule an Introductory Call