Older Farmers Can Contribute $30,000 to a 401(k) Plan

  • Agribusiness
  • 10/24/2022

Farmers can contribute more to retirement plans in 2023 and we go over the details

The IRS announced last week that all workers who participate in a 401(k) plan will be allowed to contribute $22,500 into a 401(k) plan starting in 2023 an increase of $2,000 from 2022 amounts. For those taxpayers age 50 or over, they could contribute an extra $7,500 an increase of $1,000 from 2022.

This means a farmer can defer up to $30,000 of their salary into a 401(k) plan starting in 2023 if they are least 50.

Taxpayers can also contribute an extra $500 into their IRAs starting in 2023 or a total of $6,500. Remember that this is a combined limited for ROTH and Regular IRAs. For example, you can put $3,000 into a Regular IRA and $3,500 into a ROTH.

The amount that can be put into a SIMPLE plan increases from $14,000 to $15,500.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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