Retirement savings limits get a big boost

Due to newly released IRS limits, eligible employees can save significantly more in the health system’s 457(b) voluntary retirement savings plan next year.

The annual maximum employee contribution will increase to $22,500 in 2023, up from $20,500 this year. “Catch-up” contributions for older workers are also getting a boost. Those age 50 and older can save an extra $7,500, compared with the current $6,500.

Together this means those 50 or older will be able to save as much as $30,000 of pretax income in the 457(b) voluntary plan next year.

These contribution limits are also independent of the health system’s 401(a) retirement plan, to which employees and the health system make automatic contributions based on years of service. This unique two-plan design allows employees to save more for retirement than with a traditional 401(k).

How to change contributions, get help

Benefits-eligible employees can review and update contributions in several ways:

Need help determining a financial plan for retirement and other life goals? Employees who are eligible for or have a balance in our retirement plans can get free one-on-one financial counseling.

Learn more about the retirement plans: