The 2023 planning year has begun and the new year brings some changes that you should be aware of.
In addition to monitoring the markets and economic conditions to help inform portfolio decisions, we are always monitoring changes in rules that could affect your financial plan.
RMD Age Increased to 73:
The age when retirement account owners must start taking Required Minimum Distributions (RMDs) has increased from 72 to 73. If you turned 72 in 2022, you will need to continue taking RMDs as scheduled.
RMDs Required for Certain Beneficiaries of Retirement Accounts:
A grey area in the rules around inherited retirement account distributions was clarified for 2023 and beyond. In addition to being required to fully distribute an account within 10 years, many non-spouse beneficiaries will now be subject to a minimum amount that must be distributed each year.
IRS Annual Inflation Adjustments:
The standard deduction has increased to $27,700 for Married/ Filing jointly and $13,850 for single filers. Income tax and capital gains tax bracket thresholds were also increased by approximately 7%.
Maximum Elective Deferral Increases:
The maximum salary deferral to retirement plans such as 401(k)s has increased to $22,500. For those over 50, the Catch-Up Contribution is now $7,500.
This is not an exhaustive list of updates for 2023. If you would like to speak with us about your current situation, CONTACT US.
Happy New Year!
Integras Partners does not provide formal tax, legal or accounting advice. This material has been prepared for informational purposes only.