Mercer projects 2023 IRA and saver’s credit limits 

August 12, 2022

Mercer has projected 2023 limits for individual retirement accounts (IRAs) and the saver’s credit. These unofficial 2023 limits are determined using the Internal Revenue Code (IRC)’s cost-of-living adjustment methods, chained Consumer Price Index for All Urban Consumers (chained CPI-U) values through July and Mercer’s projected chained CPI-U for August. IRS usually announces official limits for these benefits in October or November, along with final limits for qualified retirement plans.

The unprecedented level of inflation (7.1% for the 11 months ending July 2022), on the heels of last year’s unusually large 3.1% increase, will raise all indexed traditional and Roth IRA limits for 2023. The catch-up contribution limit isn’t annually adjusted. The AGI thresholds for spouses filing separately are set to $0.

All AGI levels at which employee contributions to a qualified retirement plan or an IRA qualify for the saver’s credit are expected to increase significantly in 2023, due to the high level of inflation since last September.

Mercer Law & Policy resources

• Quick benefit facts for 2022 (Jan. 19, 2022)
• Summary of 2022 benefit-related cost-of-living adjustments (Jan. 19, 2022)
• Quick benefit facts and COLA resources for benefit plans (2017–2022)