Forbes - 2023 tax tips for savers

Your Weekly Advisor Update

A Note From Natalie:

If one of your New Year’s goals was to save more for retirement this year, then you’re in luck: The 401(k) contribution limits for 2023 got a bigger hike than usual which means you can put away even more pre-tax money for retirement. But not everyone can afford to sock away extra cash for the future. 

With a looming recession and high inflation, many Americans are pulling back on saving, including on their retirement. According to a recent survey by Allianz, 54% of Americans reported reducing or holding off on stashing away money for retirement savings due to high inflation. 

Because there’s always a smart way to save, we compiled the latest savings options to make your money work for you (whether your needs are immediate or long-term).

Very best,

Natalie

Natalie Campisi

Senior Staff Writer

Consumer Finance

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Retirement Savings Limits Get a Hike in 2023

If your employer offers a 401(k) savings plan, take advantage of it if you can. Often, employers will contribute to it or even match what you put in, so it’s wise to jump on this free money. The other benefit of a 401(k) is that it lowers your taxable income. Finally, compound interest makes a huge difference in how much you end up saving over time. 

And here’s some excellent news: Retirement savers can put away more in 2023 thanks to a rise in contribution limits for 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan. 

Last year, the maximum amount savers could contribute to their annual plan was $20,500—this year, it’s $22,500. If you’re over 50, the maximum contribution amount jumps to $30,000. While this might seem like a modest boost, over time, it adds up (thank you, compound interest). IRA contributions also increased in 2023 to $6,500, up from $6,000 in 2022. 

Read more about 2023 401(k) contribution limits here.

Best Tax Software Of 2023

We tested and reviewed five of the top online tax software platforms: Cash App Taxes, Jackson Hewitt, TaxSlayer, H&R Block and TurboTax. To find the best of the best, we assessed their prices, free tax filing options, ease of use and customer service quality.

Best Tax Software Of 2023

Want more tips for the tax season? Click on the link below to automatically subscribe to our two-week tax email miniseries, written by Kemberly Washington, CPA, Forbes Advisor Tax Analyst.

Here’s what else you should know
this week:

Best High-Yield Savings Accounts Of January 2023

Not everyone has access to a 401(k) account and even those who do may not be able to max it out. But that doesn’t mean you shouldn’t try to maximize earnings on what you can save. You might be surprised that there are no-fee savings accounts that will pay you more interest than what you’re currently getting just for depositing money.

Our Best Money Tips For A Recession

If you’re worried about the future of the economy (and your money), start getting your finances in order now. Experts are mixed on the likelihood of a recession, but it never hurts to be prepared. Here’s our advice for getting your finances in order.

The Best Safe Investments Of 2023

Many people gravitate to lower-risk investments—especially if retirement is near. If you want savings options beyond the 401(k), there’s much to choose from. Forbes Advisor compiled a list of less risky investments for 2023, which include everything from certificates of deposit (CDs) to Series I Savings Bonds.

Best Travel Credit Cards Of  2023

It’s easier than you think to leverage your credit card rewards to snag award flights and upgrades using miles and points. That said, be sure to have your credit house in order before you start earning rewards because the interest rates and fees will outweigh what you earn in rewards on a monthly balance.

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Here's The No. 1 Reason Americans Crave Travel Rewards Credit Cards

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