Let's face it, 2022 bled our wallets dry. 🥵 The economy was wilder than a pack of frat guys on spring break. Many Americans are still trying to nurse the financial hangover. We'll take some extra strength Advil and an IV of hydration, please. 😵💫🆘
While we're not exactly out of the woods, 2023 brings some pretty promising investment and tax changes to give you a money boost. 💰🚀
Here’s Five Fast Facts on this year's updates:
- 🧑🏻🦳 Aging Gracefully - If you're 72 or older, the IRS makes you take a minimum withdrawal from your retirement accounts each year. This is called a required minimum distribution, or RMD. In 2023, the age bumps up to 73 and in 2033 it goes to 75, giving you some more time to keep growing your investments.
- 💼 Super Saver - Got a 401k with your job? Uncle Sam's giving you the chance to sock away a bit more this year. Last year, employees could contribute $20,500 per year, but in 2023 it jumps to $22,500. Those 50 and older have the opportunity to make what's called a catch-up contribution, and that limit jumps from $6,500 to $7,500. If you have a 403(b), 457, or a Thrift Savings plan, this applies to you as well.
- 📊 Capital Pains Gains - Planning on cashing in some stock market investments this year? One major bummer is that you'll have to pay capital gains taxes on money taken out of a brokerage (non-retirement) account. The good news is that if you have a taxable income of $44,625 or less, you fall into the 0% tax bracket! The threshold is $89,250 for married couples filing jointly.
- 🆙 Raising Our Standards - The tax man cometh, but you can keep a little bit more by lowering your taxable income with the standard deduction. That number jumps to $13,850 in 2023 from $12,950 in 2022. Read more about these changes here.
- 🤑 Rollin' with a Roth - Roth IRAs are the bees knees, but you aren't eligible to invest in one if you're above a certain income threshold. The good news is that in 2023, the phaseout range rises to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.
🔥Bottom line: When it comes to saving, we'll take all the help we can get. While inflation continues to hit us harder than a cheap tequila shot, making these tax and investment adjustments is the *least* our good pal government can do. For more savvy investing tips, check out this article!
Planning on taking advantage of these new 2023 changes? Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
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