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A Different Degree of Wealth

401(k) Limit Increases To $22,500 For 2023, IRA Limit Rises To $6,500

This past week The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023. (This notice can be viewed here).

Highlights of changes for 2023

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $22,500, up from $20,500.

The limit on annual contributions to an IRA increased to $6,500, up from $6,000. The IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $7,500, up from $6,500. Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan who are 50 and older can contribute up to $30,000, starting in 2023. The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2023.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase‑out ranges for 2023:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $73,000 and $83,000, up from between $68,000 and $78,000.
  • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $116,000 and $136,000, up from between $109,000 and $129,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $218,000 and $228,000, up from between $204,000 and $214,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $138,000 and $153,000 for singles and heads of household, up from between $129,000 and $144,000. For married couples filing jointly, the income phase-out range is increased to between $218,000 and $228,000, up from between $204,000 and $214,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $73,000 for married couples filing jointly, up from $68,000; $54,750 for heads of household, up from $51,000; and $36,500 for singles and married individuals filing separately, up from $34,000.

The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000.

If you have any questions about the tax changes and how to take advantage of them, give us a call.

Have a great weekend!




Source: IRS.gov


Golf Tip of the Week

The Healthy ‘Superfood’ Snack That Golfers Should Eat More

I don’t know about you, but I’m a bit of a snacker. Both when I’m puttering around my house, and especially when I’m on the golf course.

The problem is, the snacks I reach for aren’t always the healthiest. Just a variety of sugary delights that taste great but can cause you to spike and then crash quickly. Not a great rhythm to get into when you’re trying to navigate 18 holes over the course of more than four hours.

But a new study, released this week by King’s College London, reminded me that I should break that bad habit, and can do so in one relatively easy way: eating more almonds! You probably should too, here’s why.

Why you should eat more almonds

Almonds have long been considered a superfood because they’re packed with antioxidants and nutrients. They have qualities that can lower your cholesterol, and because they contain a relatively high amount of protein, it’s a weight loss-friendly snack that helps you lose weight by limiting your hunger.

And according to a new study, there’s evidence it can boost your gut health, too.

Published American Journal of Clinical Nutrition, 87 participants were split into three groups and studied over four weeks. Two of those groups ate 56 grams of almonds every day (one group whole almonds, the other group of ground almonds) while the other group ate “energy-matched muffins.”

By the end of the study, the almond-eating group had a higher number of fatty acids, fiber, and potassium, other things, which helped their gut function better.

All of which is to say, the next time you’re looking for some fuel to sustain your round, reach for a handful of almonds. Your body will thank you for it, and your game might, too.




Tip adapted from golfdigest.comi


Recipe of the Week

Sweet Pumpkin Pie

8 servings

Ingredients

  • Melted butter or margarine, for greasing
  • 1kg butternut pumpkin, peeled, deseeded chopped
  • 300mls thin cream
  • 200g (1 cup, firmly packed) brown sugar
  • 4 eggs, lightly whisked
  • 2 tbsp golden syrup
  • 1/2 tsp ground ginger
  • 1/2 tsp ground cinnamon
  • 1 tsp freshly grated nutmeg or ground nutmeg
  • 50g dark chocolate, grated, to serve
  • Thick cream, to serve
  • Pecan nuts, chopped, to serve

Instructions

  • Preheat oven to 350°F. Brush a 24cm fluted ceramic flan dish with the melted butter or margarine lightly grease.
  • Place the pumpkin in a steamer and cook over simmering water for 15 minutes or until tender. Drain the pumpkin well. Transfer to a large mixing bowl and mash until smooth. Cool.
  • Gradually stir the cream into the mashed pumpkin and mix well. Add the brown sugar, whisked eggs, golden syrup, ginger and cinnamon and mix until well combined. Pour the mixture into the prepared flan dish. Sprinkle with nutmeg and bake in preheated oven for 55-60 minutes or until just set.
  • Remove from the oven and cool. Place in your fridge for 2-3 hours to chill before serving. Sprinkle evenly with the grated chocolate and serve with thick cream sprinkled with chopped pecan nuts




Recipe adapted from taste.com.auii


Health Tip of the Week

Preparing For Surgery: The Operating Room

What to expect the day of surgery

On the day of surgery, you will meet with the medical team involved in your surgery. This will include your surgeon, the anesthesiologist, an operating room nurse, and various other healthcare professionals.

Getting ready for surgery

You may expect some of the following to happen:

  • You may need to change into a hospital gown.
  • You will receive an ID bracelet.
  • An intravenous catheter (IV) may be inserted in your forearm or other location for anesthetics and other medicines.
  • You may be transported on a stretcher to the operating room.

What does the operating room look like?

The operating room can be an intimidating, busy place. It has a lot of unfamiliar technical equipment. The following is a brief list of equipment you may see in the operating room. Each operating room varies depending on the type of surgery being done:

  • The operating table in the center of the room can be raised, lowered, and tilted in any direction.
  • The operating room lamps allow for brilliant illumination without shadows during surgery.
  • You will be connected to various monitors that keep track of your vital signs. These include your heart rate and blood pressure.
  • A ventilator or breathing machine stands by the head of the operating table. If your procedure is done under general anesthesia, a ventilator will breathe for you during the procedure by moving oxygen and air in and out of your lungs.
  • Sterile instruments to be used during surgery are arranged on a stainless steel table.
  • A diathermy machine, to control bleeding, usually is present.
  • If the surgery needs it, a heart-lung machine, or other specialized equipment, may be brought into the room.
  • The operating room will likely be cold to minimize bacterial growth.




Tip adapted from hopkinsmedicine.org


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i https://www.golfdigest.com/story/almonds-superfood-golfer-snack
ii https://www.taste.com.au/recipes/sweet-pumpkin-pie/0f50fb7e-6fed-423d-86a1-8d72dea2e1a4
iii https://www.hopkinsmedicine.org/health/treatment-tests-and-therapies/the-day-of-surgery-getting-ready-for-surgery-the-operating-room

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