1. Bigger contribution limits on retirement accounts

If you’re eager to boost your retirement savings, there’s good news for 2023: higher contribution limits for your 401(k) and individual retirement account.

In 2023, the employee deferral limit is $22,500, up from $20,500, and catch-up deposits for savers age 50 and older jump to $7,500, up from $6,500. These increases also apply to 403(b) plans, most 457 plans and Thrift Savings Plans.

“That’s a big change for a lot of people,” said certified financial planner Brandon Opre, founder of TrustTree Financial in Huntersville, North Carolina. 

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

Scott Bishop, a CFP and executive director of wealth solutions at Houston-based Avidian Wealth Solutions, said some of the biggest personal finance changes for 2023 are tied to inflation.

For example, the IRS in October announced “some relief” with higher federal income tax brackets for 2023, he said, which means you can earn more before hitting the next tier.

Each bracket shows how much you’ll owe for federal income taxes for each portion of your “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.