Higher consumer prices this year will likely translate into record increases to the contribution limits federal regulators place on workplace retirement plans next year.
Asset management firm Mercer LLC projects a nearly 10% hike in the maximum yearly limit workers enrolled in 401(k), 403(b), and many 457 plans can make in 2023.
The IRS currently places a $20,500 cap on annual employee deferral limits, but Mercer Law and Policy analysts said those figures could increase to $22,500. A 5% jump in contribution limits in 2020 was the second highest increase in US history.
A rise in contribution rates usually signals ...
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