1.27.23: Audio automatically transcribed by Sonix

1.27.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Val Majewski:
Welcome back to the federal retirement show. I'm your host, Val Majewski, with American Benefits Exchange. And happy New Year to everybody. We are in January of 2023. It doesn't matter when you're watching this episode, but this is as of January 20, 23. Why is that important? Because there are some updates to the contribution limits to both your Thrift savings Plan, your TSP, and to Roth IRAs, which are outside of TSP. So in this relatively short episode, I just want to give you that update on what are those contribution limits? What can you now put into your TSP in the year 2023 and into your outside Roth IRAs as well? So let's dive into the information and I'll share with you what those numbers look like. So first, TSP limits. Now, TSP has two different types of accounts the traditional account and the Roth account. These limits apply to the combined total between the two, and this is just your contributions. It has nothing to do with the matching contributions that the government puts in on your behalf. Your contribution limits for 2023 are as follows. You can put in up to $22,500 per year. That's a big increase, 2000 increase from last year's 20,500. So 2023 $22,500 in total contribution limits combined between both the traditional and Roth account. Now, if you are 50 and older, you can do additional catch up contributions up to $7,500. So your total, if you're 50 or older, is actually 30,000 per year. In TSP contributions combined again between both the traditional and Roth accounts, 22,005 50 and older, an additional 7500 more total if you're 50 and older. 30,500 in 2023. Now, some of you may also invest in things like an IRA or Roth IRA outside of your TSP. Those limits went up slightly as well. So Roth limits for 2023 went from 6000 to $6500 per person per year.

Val Majewski:
And if you are 50 and older, you can add up to $7,500 total. Now, that's not an addition. That is total. So you have an extra $1,000 of catch up, 7500 total into your Roth IRA per person per calendar year. So 2023 is bringing us so far just the ability to put more money aside in either your 401 K or a thrift savings plan. You still get up to the 5% matching. That has not changed. And if you have any supplemental accounts like a Roth IRA, those limits have increased as well. And you can really, really supercharge your retirement by deferring additional money in 2023. Now, it's important to see what you should and should not do. I mean, everybody's situation is different. So just because you have the ability to put in up to these new limits, it may not be the best thing for you. Certainly we want to prepare for retirement, but we do not want you to live poorly now. So the healthy balance of making sure you're properly preparing and living comfortably now is key. And if you have questions about that, you want to look over your situation and see where you stand. Visit our website Federal Retirement show dot com. Complete the form on there and we'll be in touch to answer your questions to a personalized benefits and retirement review. Make those projections so you can see how you're trending as you get closer to your expected or anticipated retirement day. Well I appreciate you taking the time to learn about the new limits for 2023. I know this was a very short episode. Again, my name is Val Majewski. Thank you for joining me and look forward to seeing you on our future episodes.

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you'd love including powerful integrations and APIs, share transcripts, world-class support, advanced search, and easily transcribe your Zoom meetings. Try Sonix for free today.