The IRS announced the 2023 contribution limits for tax-advantaged retirement plans last week. Because limits are adjusted for inflation and inflation has been very high, there are significant increases to the limits.
For participants under the age of 50, the 2023 contribution limit increased from $20,500 to $22,500, and for participants age 50 or older, they can utilize the catch-up contribution of $7,500 for a maximum annual 2023 contribution of $30,000.
You can adjust your contribution limits on the Alerus participant website. If you have questions about accessing the site, see - Access Alerus Website.
Remember, when computing the maximum annual contribution limit, you need to factor in the additional contribution made by Dauphin County. Below are examples of how to compute the maximum per pay amount:
$22,500 - $104 (Dauphin County Contribution of $4 * pay periods ex. 26) = $22,396 / 26 (pay periods) = $861.38
$30,000 - $104 (Dauphin County Contribution of $4 * pay periods ex. 26) = $29,896 / 26 (pay periods) = $1,149.84
Remember, you can make either or both Roth and Pre-Tax contributions.
If you have questions regarding your contributions or other aspects of your account, please Contact Us.