401(k) Contribution Limits are Jumping

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According to the New York Times, the I.R.S. announced one of its largest increases in decades to caps on retirement contributions, allowing workers with access to the plans to save more.

Questions:

  1. How much will employees be able to contribute in 2023 to 401 (k) plans?
  2. How much are the catch-up contributions for 2023 and what are these types of contributions?
  3. Social Security announced the largest COLA adjustment since 1981. What was it?
  4. What is driving all these changes?

Source:

Kelley, L. (2022). 401(k) Contribution Limits Are Taking a Big Jump for 2023. The New York Times, Oct. 21 (Retrievable online at https://www.nytimes.com/2022/10/21/business/401k-contribution-limits-2023.html)