Newly released IRS limits for 2023!

October 31, 2022
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Good afternoon!


First, a quick webinar announcement: on Tuesday, November 15th at 8pm I will be doing a webinar with Ankit Patel, practice manager for his wife's practice in the greater Atlanta area.


A little background on this event: the number one conversation I have with practice owners these days is how difficult hiring and managing staff if, so you can imagine my surprise talking with Ankit and hearing him say how well run his staff and hiring process have become. So of course I had to ask if he would be willing to share his process with other practice owners. We hope to see you there!

REGISTER HERE
Can't make it? Register for the replay here.

You have probably noticed that every few years the amount you’re able to contribute to your IRA and 401k changes slightly, usually by $500 or so. These numbers are actually inflation adjusted based on a ridiculously complex CPI calculation as defined below:


The Inflation Reduction Act extended certain energy related tax breaks and indexed for inflation the energy efficient commercial buildings deduction beginning with tax year 2023. For tax year 2023, the applicable dollar value used to determine the maximum allowance of the deduction is $0.54 increased (but not above $1.07) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. The applicable dollar value used to determine the increased deduction amount for certain property is $2.68 increased (but not above $5.36) by $0.11 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.

 

If you could figure out how to calculate that adjustment you are one step ahead of me! But as an advisor I’m very interested in what this means for retirement savings and taxes and will be making sure my clients tweak their planning accordingly. As you think about 2023 cash flow, be sure to take these adjustments into consideration with your planning.

Updated Retirement Contribution Levels

Updated Tax Brackets

I'll send out a nudge in January to increase contributions as well. As always, let me know if you have any questions and have a wonderful week!


Natalie

Helping ODs Build Wealth Outside Their Practice
Natalie Hayes Schmook, MBA
Certified Financial Planner™
Certified Valuation Analyst™
Certified Exit Planning Advisor
www.hayeswealthadvisors.com
natalie@hayeswealthadvisors.com
(404) 954-1133

Hayes Wealth Advisors provides financial planning through a Comprehensive Personal Wealth Action Plan and long term, customized investment management services. Our goal is to help optometric practice owners build wealth outside their practice in such a way that they are able to live life to their fullest regardless of market conditions.

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