If you’re one of the few State of Missouri employees who max out your contributions to the MO Deferred Comp 457 retirement savings Plan, it’s time to celebrate because you can contribute and shelter more of your income in 2023. The IRS announced that contribution limits will increase from $20,500 in 2022 to $22,500 in 2023. That’s almost a 10 percent increase and a significant jump compared to previous years. In addition, participants age 50 and over can contribute an extra $7,500 for a total of $30,000 in 2023. To calculate your semi-monthly contribution for 2023, simply divide the contribution limit by 24 periods. For example, if you want to max out the annual $22,500 limit next year, you will need to contribute $937.50 every semi-monthly pay period in 2023. Contribution changes need to be made in December 2022 to go into effect the first pay period in January 2023. If you have any questions, please do not hesitate to contact your local financial education professional, or call 800-392-0925 to speak with our call center.
