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5 tax, investment changes that could boost your finances in 2023

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1. Bigger contribution limits on retirement accounts

But without a reminder from an advisor or your 401(k) plan provider, these increases “might go undetected,” he said. 

The contribution limits have also increased for IRAs, allowing you to save up to $6,500 for 2023, up from $6,000 in 2022. While the catch-up deposit remains at $1,000 for 2023, it will index to inflation starting in 2024.

2. Tax savings with inflation-adjusted brackets

The standard deduction also increases in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850 in 2023, a jump from $12,950.

3. Higher threshold for 0% long-term capital gains

With higher standard deductions and income thresholds for long-term capital gains in 2023, you’re more likely to fall into the 0% bracket, Lucas said. 

For 2023, you may qualify for the 0% rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing together.

4. Higher income limit for Roth IRA contributions

More Americans may be eligible in 2023 because the adjusted gross income phaseout range rises to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.

While some investors may seek “complicated” moves, like so-called backdoor Roth conversions, which transfer after-tax 401(k) contributions to a Roth IRA, Pon urges investors to double-check Roth IRA contribution eligibility first. 

5. More time for required minimum distributions


1. Bigger contribution limits on retirement accounts

But without a reminder from an advisor or your 401(k) plan provider, these increases “might go undetected,” he said. 

The contribution limits have also increased for IRAs, allowing you to save up to $6,500 for 2023, up from $6,000 in 2022. While the catch-up deposit remains at $1,000 for 2023, it will index to inflation starting in 2024.

2. Tax savings with inflation-adjusted brackets

The standard deduction also increases in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850 in 2023, a jump from $12,950.

3. Higher threshold for 0% long-term capital gains

With higher standard deductions and income thresholds for long-term capital gains in 2023, you’re more likely to fall into the 0% bracket, Lucas said. 

For 2023, you may qualify for the 0% rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing together.

4. Higher income limit for Roth IRA contributions

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More Americans may be eligible in 2023 because the adjusted gross income phaseout range rises to between $138,000 and $153,000 for single filers and $218,000 and $228,000 for married couples filing jointly.

While some investors may seek “complicated” moves, like so-called backdoor Roth conversions, which transfer after-tax 401(k) contributions to a Roth IRA, Pon urges investors to double-check Roth IRA contribution eligibility first. 

5. More time for required minimum distributions

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