Retirement Plan Contribution and Income Limits for 2023

Published on November 3, 2022

The IRS has increased the contribution limits for all types of retirement plans—Traditional and Roth IRAs, certain governmental plans, and qualified retirement plans (defined benefit and defined contribution plans) for 2023. The new amounts adjust for cost-of-living increases and also apply to income limits as we detail below.

Cost-of-Living Adjusted Limits for 2023

Roth IRA contribution and AGI limits

Taxpayers with a Roth IRA may contribute up to the full allowed amount annually depending on their income. The adjusted gross income (AGI) ranges have increased for 2023 for making the maximum deductible contributions.

Traditional IRAs

If the taxpayer or the spouse was covered by a workplace retirement plan during the year, the deduction on the Traditional IRA contributions may be reduced or phased out until it is eliminated. This depends on filing status and income.

All the details about these increased contribution limits and cost-of-living adjustments for 2023 are on (see Notice 2022-55), which also has information for participants in employer-sponsored retirement plans. As always, we recommend you consult your trusted tax advisor for guidance.

Maximize your contributions to a self-directed IRA

All types of IRAs may be self-directed (Traditional, Roth, SEP, SIMPLE, etc.). While they are governed by IRS contribution limits, the types of alternative assets these plans allow are far broader than in their typical counterparts. Therefore, you can maximize those annual retirement plan contributions by investing in a broad array of alternative assets you already know and understand.

With a self-directed IRA, you can build a more diverse retirement portfolio and a hedge against market volatility and inflation—so crucial in today’s market. You’ll also have the potential to save more for retirement through nontraditional investments such as real estate, precious metals, private equity, royalties, and many more. The only limitations on your self-directed investments are no collectibles or insurance policies, no self-dealing or extensions of credit, and no transactions with disqualified persons.

Self-directed IRAs at Next Generation

As we head into 2023, consider how you can maximize your annual retirement plan contributions with a self-directed IRA at Next Generation—and the diversity of alternative assets you can include. You may register for a complimentary educational session with a Next Generation representative to get more insights into the many benefits and options of self-direction as a retirement strategy. You can also contact us directly by email at, call us at 888.857.8058, or text us at 848.233.4076.