401k limits increasing 2023

10,181 Views | 64 Replies | Last: 3 yr ago by Hudson2508
gindaloon
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
12:50p, 10/21/22
Going up $2,000 to $22,500 in 2023. 50 and older catch up increasing by $1,000 to $7,500
Reply Quote
1 edit
YouBet
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:03p, 10/21/22
Largest increase ever.
Reply Quote
topher06
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 1:07p, 10/21/22
Inflation hitting everywhere.
Reply Quote
YouBet
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:47p, 10/21/22
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.
Reply Quote
CheeseSndwch
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
2:09p, 10/21/22
I'll definitely be front loading my 401(k) contributions in 2023.
Reply Quote
ORAggieFan
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 2:22p, 10/21/22
YouBet said:
For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains.

Huh.

Wrong board.
Reply Quote
YouBet
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to ORAggieFan • 2:30p, 10/21/22
ORAggieFan said:
YouBet said:
For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains.

Huh.

Wrong board.
Hedge might appreciate it though.
Reply Quote
not hedge
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 3:11p, 10/21/22
Lol I have all losses. That being said they should increase the Roth
Reply Quote
AgOutsideAustin
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
3:35p, 10/21/22
Love it, save more with 40 year high inflation happening, ok.
Reply Quote
Ag CPA
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 3:58p, 10/21/22
YouBet said:
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.
Guess the government is saying that if your life sucks that bad they might as well throw you something.
Reply Quote
Brian Earl Spilner
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 3:58p, 10/21/22
YouBet said:
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.


Reply Quote
Petrino1
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:35p, 10/21/22
The government probably realizes this wont affect anything since the average person can't afford to max out their 401k due to out of control inflation lol.
Reply Quote
stonksock
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:54p, 10/21/22
Next year is going to be epic for me at my new job: 22.5k pre tax, 18.5k company match, 25k post tax mega backdoor roth.
Reply Quote
not hedge
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to stonksock • 5:58p, 10/21/22
18.5k company match? The hell
Reply Quote
FrioAg 00
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:17p, 10/21/22
Pretty sure the max company match is still lower than that.
Reply Quote
one safe place
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 6:19p, 10/21/22
YouBet said:
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.
Been true for long-term capital gains (at varying levels of income) since 2008.
Reply Quote
stonksock
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:24p, 10/21/22
Max employer+employee is 66k next year. $185k a year with 10% 1:1 match and Roth conversion option on their plan
Reply Quote
not hedge
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to stonksock • 6:25p, 10/21/22
Your company is extremely generous with that 10% match
Reply Quote
AgCPA95
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to stonksock • 6:42p, 10/21/22
stonksock said:
Max employer+employee is 66k next year. $185k a year with 10% 1:1 match and Roth conversion option on their plan
That is a damn rich plan. Congrats!
Reply Quote
Spaceship
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to gindaloon • 7:27p, 10/21/22
gindaloon said:
Going up $2,000 to $22,500 in 2023. 50 and older catch up increasing by $1,000 to $7,500

A 9.8% increase - another concession that inflation is higher than the government lies abut…uh I mean announces…every month.
Reply Quote
txaggie_08
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to AgCPA95 • 7:41p, 10/21/22
AgCPA95 said:
stonksock said:
Max employer+employee is 66k next year. $185k a year with 10% 1:1 match and Roth conversion option on their plan
That is a damn rich plan. Congrats!

My company will throw in 10% as long as we put in at least 5%. $2 for $1 up to 10%.
Reply Quote
not hedge
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to txaggie_08 • 7:44p, 10/21/22
Lol I feel poor now
Reply Quote
stonksock
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to AgCPA95 • 8:35p, 10/21/22
Thanks. I start the job in two weeks. It's a 20% bump from my current job so my plan is to withhold enough from my paycheck to hit the 66k combined cap. I will still end up having about ~$1000 more a month take home from my current job but I haven't let my lifestyle creep so that will be enough. I still live in the house I bought when I made half what my new job is.
Reply Quote
1 edit
Red Pear Luke (BCS)
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to not hedge • 8:53p, 10/21/22
not hedge said:
Lol I have all losses. That being said they should increase the Roth


Pretty sure Roth contribution is increasing to $6500. I think. May be wrong

Edit: confirmed is $6500

https://www.kiplinger.com/retirement/higher-ira-and-401k-contribution-limits
Reply Quote
1 edit
iamtheglove
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 9:19p, 10/21/22
YouBet said:
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.
But capital gains amounts are tacked onto your taxable income for purpose of calculating capital gains taxes, I believe. So if you have $80k in taxable income and $20k in capital gains, $9k in capital gains is taxed at 0% with the remaining $11k at the 15% capital gains bracket. (Editing my post to clarify the above is for long term capital gains)
Reply Quote
1 edit
RockOn
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:13p, 10/22/22
Capital gains rates do not apply marginally. It's either all 0%, all 15%, or all 20%.
Reply Quote
Brian Earl Spilner
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to RockOn • 1:48p, 10/22/22
RockOn said:
Capital gains rates do not apply marginally. It's either all 0%, all 15%, or all 20%.


It depends on long term or short term.
Reply Quote
RockOn
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:53p, 10/22/22
Capital gains rates do not apply to short term capital gains.
Reply Quote
62strat
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to not hedge • 3:34p, 10/22/22
not hedge said:
Your company is extremely generous with that 10% match
I get 15% flat contribution.
And my bonus (25-40%) is included in the gross to calculate the 15%

5 full years and a fractional year now of employer contributions is $100k+.

Great perk.


Small independent local general contractor.
Reply Quote
2 edits
Brian Earl Spilner
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
3:38p, 10/22/22
The post above yours was accurate for short term capital gains.
Reply Quote
topher06
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to RockOn • 3:54p, 10/22/22
RockOn said:
Capital gains rates do not apply marginally. It's either all 0%, all 15%, or all 20%.


I don't think this is accurate
Reply Quote
Adverse Event
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to gindaloon • 12:09a, 10/23/22
gindaloon said:
Going up $2,000 to $22,500 in 2023. 50 and older catch up increasing by $1,000 to $7,500

Just in time for an administration to seize them..for equity or to end inflation or something.
Reply Quote
GE
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to topher06 • 7:40a, 10/23/22
topher06 said:
RockOn said:
Capital gains rates do not apply marginally. It's either all 0%, all 15%, or all 20%.
I don't think this is accurate
Go look it up
Reply Quote
The Grinder (99)
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:24a, 10/23/22
The first 5 years at my job they gave us 13%. Not a match, just got it.

Now that I've been here for 18 years I can see just how much of my retirement came from that alone
Reply Quote
YouBet
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to iamtheglove • 8:30a, 10/23/22
iamtheglove said:
YouBet said:
Related...was not aware that there is a 0% capital gains tax rate if you qualify. For next year, if you make less than $89K (married filing jointly) then you pay nothing on capital gains. So if you are low income or retired you can score here.

Huh.
But capital gains amounts are tacked onto your taxable income for purpose of calculating capital gains taxes, I believe. So if you have $80k in taxable income and $20k in capital gains, $9k in capital gains is taxed at 0% with the remaining $11k at the 15% capital gains bracket. (Editing my post to clarify the above is for long term capital gains)
Nope. Long term gains are capital assets you hold over one year and the profits (the gain) is taxed at 0, 15, 20 based on income brackets. Unless you are making an assload of money you are most likely paying 15% since the bracket for that range goes from roughly $40K to $500K depending on your marriage status.

If you sell an investment before one year of owning it any gains will be added to your income and you are taxed at your income rate.
Reply Quote
Page 1 of 2 ▼
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.