This episode of The Power of Zero Show addresses the recently-released new contribution limits for the 401(k) in 2023, as well as additional increases in other IRS thresholds.
David shares that the IRS just released all their inflation-adjusted numbers for 2023. The biggest surprise is a 9.7% increase in the limits for the 401(k) contributions, which went from $20,500 this year to $22,500 next year.
In addition to the contribution limits for the 401(k), the IRS has also increased the catch-up contributions for people over 50.
According to David, the Roth 401(k) has become one of the real juggernauts for those looking to build huge amounts of tax-free retirement wealth.
David goes over some of the additional changes and increases, as well as their repercussions on single people, married couples, and people over 50.
David reiterates the fact that the 24% tax bracket is the single biggest sweet spot in the Trump tax cuts, and goes over what will happen if you aren’t going to take advantage of it.
Mentioned in this episode:
David’s books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram