New Bill Would Boost IRA, Retirement Plan Contribution Limits for 1 Year

What You Need to Know

The bill raises the yearly contribution limit for Roth and traditional IRAs to $10,000 for 2023.
It raises the workplace plan contribution limit for the year to $24,500.

House Republicans have introduced the Retirement Protection Act of 2022, which would increase the contribution limits for workplace retirement plans and IRAs — traditional and Roth — by $4,000 over the IRS-set limit for one year after enactment.

Under the bill, the contribution limits for 2023 would be $24,500 for workplace retirement plans and $10,000 for IRAs.

The bill was introduced by Rep. David Schweikert, R-Ariz., and Byron Donalds, D-Fla., at the end of July.

Schweikert said in a statement that “allowing Americans to contribute more to their retirement accounts not only helps hardworking individuals add to their savings, but also serves as an alternative for funds that might be spent on inflated goods elsewhere. If we are going to defeat unprecedented inflation, we must think about long-term solutions. And this bill accomplishes just that.”

The House passed its version of Secure Act 2.0, officially called the Securing a Strong Retirement Act of 2022, in March.