
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.
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