The max amount an employee can contribute in 2023 is $22,500 or $30,000 if 50+.
If you are already set to max out your 401(k) there are a couple of options to save more for retirement:
- Contribute to an IRA or Roth IRA
- If you meet income eligibility requirements, you can open a Roth IRA and contribute up to $6,500 or $7,500 if 50+ with after-tax dollars.
- If you want to reduce tax liability and you meet income eligibility requirements, you can open an IRA and contribute up to $6,500 or $7,500 if 50+ that is tax deductible.
- If you are not eligible for the tax-deductible IRA contributions or the Roth IRA you can still contribute to the IRA, but it will not be deductible.
- Once you have maxed out your 401(k) and IRA contributions the next option is to open an individual taxable account or joint taxable account if married.
- Here there are no eligibility requirements or contribution limits.
- Any gains/losses are subject to capital gains tax
If you would like to meet with an advisor to determine which account is right for you please schedule a call here.