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New Tax Rules for 2023

August 17, 2023

I hope you're having a great summer. My wife and I traveled to Utah in August to see Zion National Park, Bryce Canyon, and Antelope Canyon. How amazing America is that you can visit deserts, mountains, rolling green hills, and tropical beaches all in one country. Plus Las Vegas! 

Even though it is August, it's always a good time to review new tax rules and laws from the Internal Revenue Service. Here are a few to keep in mind:

The standard deduction increases again from $12,950 for Single filers in 2022 to $13,850 in 2023. Married Filing Jointly increases from $25,900 in 2022 to $27,700 in 2023.

Roth and traditional IRA contribution limits increase from $6,000 to $6,500. Individuals over 50 see an increase from $7,000 to $7,500 in 2023.

Income limits for Roth IRA contributions increase as well: Individuals earning less than $138,000 modified adjusted gross income can make a full contribution while married filing jointly couples can earn up to $218,000 (MAGI) and make full Roth contributions.

Also, keep in mind on 401(k) retirement plans that individuals who leave that employer at 55 or older can make withdrawals from their 401(k) penalty-free. This is called the "separation of service" rule. Note that you cannot do this if you roll your 401(k) to an IRA prior to age 59 1/2. 

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