Investors can contribute up to $22,500 in 401(k)s and up to $6,500 in IRAs in 2023.

If you’re interested in saving more for retirement in 2023, there is good news The IRS announced higher limits on your annual 401(k) plan and individual retirement account contributions.

The employee contribution limit for 401(k) plans will increase from $22,500 to $20,500 in 2023, and the catch-up deposit limit for savers age 50 and older will rise from $6,500 to $7,500. The new amounts also apply to 403(b) plans, most 457 plans and thrift savings plans.

The agency increased contribution limits for IRAs, allowing investors to save $6,500 in 2023, up from $6,000 in 2022. The catch-up deposit will be $1,000.

More from Personal Finance:
IRS: Here are the new income tax brackets for 2023
Here’s how much you can earn in 2023 and pay 0% capital gains taxes
The IRS is raising the estate tax deduction to $12.92 million for 2023

The boost to IRA contributions is significant because the cap has not changed since 2019, limiting savings for Americans without a workplace retirement plan.

And more Americans could qualify for Roth IRA contributions, with the adjusted gross income limit rising to $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples.

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