IRS raises contribution limits for retirement savings plans

By ALEX VEIGA
AP Business Writer

Americans will be allowed to contribute more of their money to 401(k) and similar retirement saving plans next year. The IRS said Friday that savers with 401(K) and similar plans will be able to contribute up to $22,500 next year. That’s up from $20,500 this year. People aged 50 and over, which have the option to  make additional “catch-up” contributions to 401(k) and similar plans, will be able to contribute up to $30,000 in 2023. The IRS also raised the annual contribution limits on individual retirement arrangements, or IRAs, by $500 to $6,500. The changes make it easier for retirement savers to set aside more of their income toward building their nest egg.