Contributing the maximum amounts to your retirement and health savings accounts reduces your tax liability. Below are the maximum contributions you can make for the year 2023.
1) For 401(K)s:
a) $22,500 up to age 49
b) $30,000 for ages 50 and up
2) For IRAs:
a) $6,500 up to age 49
b) $7,500 for ages 50 and up
3) For HSAs:
i) $3,850 for self up to age 54
ii) $7,750 for families up to age 54
iii) $4,850 for self for ages 55 and up
iv) $8,750 for families for ages 55 and up
Taxes are your largest annual expense, but effective and consistent tax planning can reduce it significantly. A complimentary call to discuss your tax circumstances and our approach to planning via Calendly will be helpful.