At the end of 2019, many investors’ retirement accounts were at an all-time high, unemployment was at an all-time low, and Congress just passed legislation to encourage businesses to sponsor retirement plans and workers to save for retirement.
Because of the significant increase in the federal Consumer Price Index (CPI) over the past year, the IRA and retirement plan contribution limits will be increasing for 2023 – in some cases by a lot.
Because there are tax advantages to saving for retirement in qualified retirement plans and IRAs, tax laws limit how much you may put into these accounts each tax year. It’s important to understand how these limits affect your ability to maximize your tax-advantaged retirement savings for 2021.