By Dr. James M. Dahle, WCI Founder
Contribution limits for 401(k)s, 403(b)s, 457(b)s, IRAs, Roth IRAs, HSAs, FSAs, SIMPLE IRAs, and SEP-IRAs are all indexed to inflation. While the contribution limits do not go up every year and while every account does not use the same formula for when there will be an increase, you will generally see an increased contribution every year or two.
Inflation has exploded in the first half of 2022, all the way up to 9.1% in July, so the 2023 contribution limits for many of these accounts have been increased. In fact, if you know the latest inflation numbers, it is possible to calculate the increase even before the IRS announces it in October or November. The closer you get to October, the more accurate your projection can be.
For now, we can make our own calculations for what the 2023 retirement plan contributions will be. We'll update them if they change when the IRS makes it official in the final few months of 2022 (as of late October, the IRS has confirmed the numbers).
2023 401(k) and 403(b) Employee Contribution Limit
The total employee contribution limit to all 401(k) and 403(b) plans for those under 50 will be going up from $20,500 in 2022 to $22,500 in 2023, a large increase. The catch-up contribution limit will increase from $6,500 to $7,500, so if you're 50+, your 401(k) employee contribution limit should be $30,000 in 2023.
2023 401(k)/403(b)/401(a) Total Contribution Limit
For 2023, the total of all employee and employer contributions per employer will increase from $61,000 in 2022 to $66,000 in 2023 for those under 50. Since the catch-up contribution has increased to $7,500, the total contribution for those 50+ will be $73,500.
Note that the 401(a) limit is separate from the 403(b) limit. So, you could theoretically get $66,000 into each of them.
2023 457(b) Contribution Limit
457(b) contribution limits will increase from $20,500 to $22,500 in 2023. 457(b)s have unique catch-up contribution rules, so consult with your plan administrator if you are interested in putting more in your 457(b).
2023 Traditional and Roth IRA Contribution Limits
After two years of staying put at $6,000, IRA contribution limits and catch-up contributions will increase in 2023 to $6,500 ($7,500 if 50+).
2023 SEP IRA Contribution Limits
SEP IRA contribution limits will increase to $66,000 per year for 2023, up from $61,000 per year in 2022.
2023 SIMPLE IRA and SIMPLE 401(k) Contribution Limits
The SIMPLE IRA and SIMPLE 401(k) contribution limits will increase from $14,000 in 2022 to $15,500 in 2023.
2023 Health Savings Account (HSA) Contribution Limits
For single people, the HSA contribution limit will increase from $3,650 in 2022 to $3,850 in 2023. Family coverage will increase from $7,300 to $7,750.
2023 Flexible Savings Account (FSA) Contribution Limits
Healthcare FSA contribution limits will increase from $2,850 in 2022 to $3,050 in 2023. Note that there are other types of FSAs (such as dependent care FSAs) with different limits.
Other Interesting Increases
The 401(a) compensation limit (the amount of earned income that can be used to calculate retirement account contributions) will increase from $305,000 in 2022 to $330,000 in 2023. This is always 5X the maximum 401(k) plan total contribution limit.
The deductibility phaseout for IRA contributions for those with a retirement plan at work should increase from $68,000-$78,000 in 2022 for singles to $73,000-$83,000 in 2023, and it'll move from $109,000-$129,00 in 2022 for those married filing jointly to $116,000-$136,000 in 2023.
The Roth IRA Direct Contribution Limit phaseout will increase from $129,000-$144,000 in 2022 for singles to $138,000-$153,000 in 2023 and from $204,000-$214,000 for 2022 for those Married Filing Jointly to $218,000-$228,000 in 2023. If your MAGI is above that, you'll need to contribute indirectly via the Backdoor Roth IRA process.
Social Security benefits will also increase by 8.7% for 2023. The maximum possible Social Security benefit for 2022 was $4,194 for someone taking benefits at age 70 for the first time. If you were a top earner for your career and qualify for the top benefit level, an 8.7% increase is worth $365 per month. The new top payment for 2023 would be $4,559 per month.
The Defined Benefit Plan 415(b) limit for maximum annuity limit will increase from $245,000 in 2022 to $265,000 in 2023.
Highly-compensated employee definition should increase from $135,000 in 2022 to $150,000 in 2023.
While it feels like all of these are increases, they are really just keeping up with inflation (even though 2023's increases are about twice as much as the increases from the previous year). They're just cost of living increases. On a real (after-inflation) basis, they're basically the same as this year.
What do you think? Are you surprised by any of these? Are you glad they're indexed to inflation? Comment below!
Thanks for posting all of these in a comprehensive and clear format. I had not even thought about 2022 yet. You saved me some digging around the IRS website.
It is great to see that I will be able to put in over 61K into tax-advantaged accounts. Any physician who consistency does that over time will build substantial wealth.
Wealthy Doc, a good strategy to follow.
The more one puts in, the more one gets out. Investors should be aware that salaries and pensions are not in line with cost of living adjustments. Time is against them if they do not put money away and pursue instant gratification.
Remember it’s not on the IRS site yet, these are technically just projections still. The actual numbers don’t get published until October or November because they’re based on fiscal year inflation.
Definitely projections because the SEP IRA and the 401(k) plans should have the same annual additions limit. And 403b contributions and 401k contributions DO share the same 402g limit. It’s 457b plans that you don’t aggregate together with the other two.
Ha ha, good catch. You’re right. They should both be $66K.
There is also a $1,000 catch up contribution for HSA age 55+
That’s true.
Very good article.
I think you should add profit sharing/ safe harbor plan
Good observations. The more investment vehicles, the better.
That’s just another name for employer contributions to a 401(k).
Another great article. I usually fill up my 401K limit and IRA right away (by March). Any thoughts about doing that or spreading it out over the year? My thinking is to get the money to work right away, which works as long as the market is going up.
Thanks for all your work,
The only issue I had with front loading my 401k was the hospital did not apply the full match and did not true up for over a year. This was when I was employed. Not an issue now since I’m self employed.
Excellent point. Gotta make sure your employer will do a true-up.
The debate of lump sum versus DCA (dollar cost averaging) is always ongoing.. there are risks to either. Up to your psychology.
The risks of waiting to invest generally outweigh the risks of investing just before a decline:
https://www.whitecoatinvestor.com/dollar-cost-averaging-is-for-wimps/
I think most of the bloggers think:
Time in market is more important than timing the market (spreading out contributions over the year). If you can contribute early, it’s probably more advantageous.
Yes, earlier is generally better since you get more compounding on growth. Unless of course, the market goes down, but we can’t predict that timing.
The timing makes a minimal difference over a long career. Asset allocation and savings rate drive most of the portfolio.
Even with the front-loading lumpsum investing you get some DCA benefit. The market prices can vary year to year. A bear market can lead to lower prices in January resulting in the purchase of more shares.
I also fill mine early. Time in the market >> timing the market. The rest of the year I invest in taxable, so I’m always investing, but figured might as well give the tax protected accounts preference.
Excellent post! Please continue to run this on recurring basis! Great for planning! Thanks again.
I no longer get that yearly flier about my social security amounts…..I tried to make an on line account but couldn’t…..does anyone know how to do that?
Thanks!
https://www.ssa.gov/myaccount/statement.html
You can’t (at least we couldn’t) open an account with a security freeze in place. Cancel any freeze, open the account, then re-freeze. Hope this helps.
What’s a security freeze?
I believe he’s referring to credit freeze so someone can’t open credit on your SS# fraudulently. But when it’s frozen, you can’t do thing like open your SS account. However, smart to keep your account frozen if you don’t need credit checks.
How does one freeze their credit?
Freezing your credit is simple, but not easy. You have to go to each of the 3 big credit bureaus, find the “freeze” area of the site and go forth. ON PAIN OF DEATH, do not lose your Pin # or whatever code they give you to unfreeze.
Security freezing/thawing is waaaayyyy easier than it used to be and now it’s free (both ways) as often as you want to do it for all 3 major credit bureaus. Just google credit freeze Equifax Experian Transunion to get there.
Losing PIN does still suck but I’ve been through it a few times and worst case is you have to send a few sentence letter by snail mail with a photocopy of an ID or 2 as i recall…maybe a utility bill as well. No big but can take a few weeks for the mail to go back and forth and get new PIN.
I know how to do it. But I don’t recall it being particularly complicated. Why not try again and see what the problem really is?
https://secure.ssa.gov/RIR/CatsView.action
The text of the article states that the SIMPLE IRA contribution is increasing from $13,500 to $14,000, but the summary chart indicates it a increasing to $14,500. It does not indicate whether or not the catch-up contribution will also increase. Does anyone know if this will also change, and what the actual contribution limit will be?
I think that is a typo:
https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
Thanks for the correction. It’s $14,000. My error. I don’t expect the catch-up to increase–$3,000.
I have a local government job in NJ, I contribute the maximum of 7.5% of my pensionable salary to my state pension plan. In addition I contribution the maximum plus my 3 year prior to retirement amount to a 457b, namely 39K, 2021 is my 3rd year. I am not planning to retire in 2022 so I will go back to my 20,500 plus 6,000 in January 2022. What else can I do to invest. Our household income for a Roth is well above the MAGI for MFJ by a lot, what else can we do?
As Jim mentioned near the end of this article, if you can’t contribute directly to a Roth IRA, you can make a non-deductible contribution to a Traditional IRA and then convert it to a Roth IRA. See this article on Back Door Roth IRA contributions: https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/
If you’ve run out of qualified account contribution space, then invest in a taxable brokerage account. If you already are saving as much as you need to in order to retire as soon and as well as you plan to, then you can pay down debt, invest more, or spend some of this additional income.
I have seen several ultrawealthy individuals make the argument that 401(k)’s and non-Roth IRA’s are poor investment vehicles from a purely financial standpoint, as they are ultimately taxed at the individual tax rate and not at the capital gains rate. I am and will likely remain well into the top tax bracket as I am sure others here can be as well. I’m mid-career and questioning the value of future contributions versus taxable investment at the long term capital gains rates.
The counter argument is of course is that the contributions are tax deferred at the front end and continue to grow tax free while in the tax advantaged accounts, of course. Does that make up for the outsized bite Uncle Sam takes when all is said and done or not, assuming the highest tax bracket?
Now there are other non-financial reasons to continue contributing to these vehicles (such as legal protections for 401k’s and the fact that contribution forces you not to spend the money in the short term) but I’m really torn. Wonder what others think or have researched about this?
This is otherwise a great summary of contribution limits for those that choose to continue contributing, which despite my considerations I tend to do, in the end.
It more than makes up for it, and that ignores the asset protection and estate planning benefits. Run the numbers and you’ll see. Or just think about it. Invest $100K now pre-tax instead of $60K taxable. It grows to $1 million. Then you pay $400K in taxes. You’re left with $600K. If you instead invest $60K in taxable, it won’t grow to $600K due to tax drag. More like $550K. Then you pay capital gains taxes on $450K. So you’re left with perhaps $450K instead of $60K. So even if you’re in the top tax bracket now and later, you should still use tax protected accounts.
I think it still makes sense to invest in tax advantaged accounts.
My wife and I are currently in the top tax bracket, but I can almost guarantee we won’t be anywhere close to that come our early retirement. When we choose to retire and eliminate the mortgage payments to minimize monthly expenses/drawing from our accounts and generating taxes, we’ll be in a much lower bracket.
The asset protection and no tax drag over years of growth are also side benefits. I also like to trade a bit in the 401k account (add leverage on dips, take it back when the market recovers) which I won’t do in the taxable account as it generates a tax bill.
I wish we could put more in!
Back door Roth for sure, as mentioned. Plus important to get the 5 year clock started on timing.
You need the Roth account to be opened 5 years and be 59 1/2 years old to pull the Roth gains out tax free.
Backdoor Roth for each spouse, maybe an HSA, and of course a taxable account:
https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/
https://www.whitecoatinvestor.com/retirement-accounts/the-stealth-ira/
https://www.whitecoatinvestor.com/retirement-accounts/the-taxable-investment-account-2/
Ohh nice, didn’t know the contribution for 401K is going up for another $1K next year!
This definitely helps because I don’t really check year-to-year and this post just reminded me to trigger a reminder to change my contributions.
Thanks for putting this together!
I turn 50 in May next year. How does that affect my contributions? Is it prorated or do I get to contribute the entire $27,000 to my 401K next year?
You can make catch up contributions in the calendar year when you turn 50. Even if your birthday was on New Year’s Eve, you get to contribute the extra $6,500 to your 401(k) and an extra $1,000 to your IRA.
You also get to make catch up contributions to your HSA starting the year that you turn 55.
HSA limits are also prorated by the number of months you are eligible for a high-deductible health plan, so remember to check that number of months to avoid running afoul of the IRS limits. A good thing to remember when you are planning for or approaching retirement. Also, remember that you cannot make or receive contributions to your HSA after you are enrolled in Medicare. Always check with a qualified tax advisor.
What do you mean “receive contributions?” You certainly can use your HSA funds while enrolled in Medicare. In fact, you can use them to pay Medicare premiums.
Don’t forget about the last month rule either for a HSA contributions.
By “receive contributions” I meant receiving contributions from your employer that are deposited in your HSA. Sorry for any confusion. Deposits made to your HSA by you or by your employer all count toward the annual IRS limit. I agree you can certainly use/spend your HSA funds while enrolled in Medicare. The HSA is a bank account and a great retirement savings option.
Exactly.
This seems like a good place to ask this. I have heard multiple conflicting answers. I will use 2022 numbers.
I work at a 501c hospital that puts 12% of my gross income into a 403b, regardless of my contribution. I can contribute up to $20,500 employee.
I also have a private practice where I match 25% of my own contribution. I can contribute up to $20,500 employee
Is the employee limit per employer? or across all employers?
Ideally I’d like to
1) Put $20,500 of my private practice income into my solo 401k, and match 25%. That makes $25,625
2) Take my 12% employer match into 403b which will be ~$25k
3) Use my 403b employee contribution to get to the 61k limit.
However if that employee limit is across all employers, than I can’t do step 3. That’s about $10k lost 401k/403b contribution opportunity.
Great question
It looks like on the internet the 415(c)(1)(A) limit ($61,000) is across all sources and therefore that is most you can put in for the year. I think if you over fund it you run in to problems like over funding your IRA, which isn’t good either. I would run all this by a tax professional (because I am not). Good luck 🙂
Yeah I think my issue is can I have multiple employers that all go up to the employee max. Or does the employee max apply to all jobs. Like if you have one job who matches 100% and you put in $20,500, your employer would put in $20,500 and you’d have $40,100. How do I get the other $20,900 to the max of $61,000? Can I get another job and put in another $20,500? Or am I maxed out because of my first job?
I would appriciate a tax specialist answer, and/or someone with actual experience. The person who does my taxes doesn’t think I can. I spoke with another tax specialist who said it’s ok. Who is right??
The $58K ($61K in 2022) limit is per employer. The $19.5K ($20.5K in 2022) limit is per person.
More info here:
https://www.whitecoatinvestor.com/multiple-401k-rules/
The big question is if your employer will let you make after tax contributions to the 401, or if you make more (12% of gross) do they contribute more or last can you change your private practice plan to let 401 after tax contributions so more money goes towards the 415 limit.One of these plans have to let you make after tax contributions or you make $333,333.33 at the Hospital, which at 12% will be the $40,000 you need to add to your $21,000 so you can have $61,000.
My understanding is the 415(c)(1)(A) limit of $58K for 2021 and presumably $61K for 2022 does NOT include the catch-up contribution. I will admit though that this has never been made very clear by the IRS or Congress as near as I can tell. I’d love to see a definitive resource on this question.
“The deductibility phaseout for IRA contributions for those without a retirement plan at work…”
Should this say “…for those with a retirement plan at work…”? I thought those without a retirement plan can always deduct their IRA contributions.
Good catch. You are correct and will fix.
I agree with the poster who mentioned the true-up. It pays to check and understand how the employer match is calculated and funded for your particular plan. It makes a difference if it’s done annually or by payroll period. If it’s by payroll period and you front load your salary deferrals, then you will have periods, after reaching annual IRS savings limits, with no salary deferral and therefore no match. In such cases, unless your employer does a true-up calculation and funds the true-up amount after year-end, you will miss out on match you would have earned if had you spread out your salary deferrals over every payroll period of the plan year.
I don’t see IRA contribution limits increasing next year? Still $6000 + $1000 catch up?
Why didn’t those also get an increase?
Thanks!
I thought IRA contributions went up from $5k to 6k fairly recently though.
TAX YEAR AGE 49 & BELOW AGE 50 & ABOVE
2002—2004 $3,000 $3,500
2005 $4,000 $4,500
2006—2007 $4,000 $5,000
2008 $5,000 $6,000
2009 $5,000 $6,000
2010 $5,000 $6,000
2011 $5,000 $6,000
2012 $5,000 $6,000
2013 $5,500 $6,500
2014 $5,500 $6,500
2015 $5,500 $6,500
2016 $5,500 $6,500
2017 $5,500 $6,500
2018 $5,500 $6,500
2019 $6,000 $7,000
2020 $6,000 $7,000
2021 $6,000 $7,000
It just comes down to the formula and how the IRS rounds. They only go up in $500 increments and sometimes it takes 2 or 3 years of inflation to justify a $500 increase.
My hospital offers the option of adding either pre-tax or Roth dollars to my 403b. As an underpaid research fellow in a low tax bracket, I would like all $19.5K to be in Roth contributions. Unfortunately, I accidentally ticked the pre-tax option early this year and didn’t catch it until ~$3.5K of pre-tax had been deposited in my 403B. The rest of the $19.5K is Roth but I wanted to see if I could convert the $3.5K pre-tax to Roth as well.
I spoke to a fidelity rep who said he didn’t think it was possible. I just wanted to see if anyone knew of any creative solutions. Thanks!
HR might be able to just fix it as though it never happened, but you otherwise just might be out of luck.
For 2021, you can deposit up to $19.5K per account. I have pretax (traditional) and post tax (Roth) 401Ks and 457s: 4 separate accounts I can contribute up to $19.5K each. If +50, I can contribute up to $26K each. So the $3.5K is fine as is, if you wish to have additional investment options.
Keep in mind you can’t do $19.5K as an employee tax-deferred contribution and a $19.5K employee Roth contribution into the same 401(k). Also keep in mind that the catch-up contributions on 457 plans work differently than 401(k) plans.
You can’t do a traditional 401k and Roth 401k with 19500 each… it’s 19500 max for both accounts.
I think you may have mischaracterized the limit identified as the “401(k) and 403(b) Employee Contribution Limit”. I believe that would more accurately be referred to as the “401(k) and 403(b) Employee PRE-TAX Contribution Limit”. If my understanding is correct, an employee can continue to make contributions in excess of the pre-tax limit on an after-tax basis, as long as the TOTAL (employee + employer) contribution limit is not exceeded. Is that correct?
That is correct, whatever you choose to call it. I’ve traditionally just called it the employee contribution limit. The IRS has a specific name for it that escapes me at the moment, but if we want to be really technical about it, that’s what we should call it.
You’re right that employee after-tax (not Roth) contributions can be made above and beyond that to the 415(c) limit ($58K in 2021, $61K in 2022)
Thanks for clarifying. Much appreciated.
Your 401(k) lead off statement is not correct as written. It reads as follows:
“For 2022, the total employee contribution limit to all plans for those under 50 will be going up from $19,500 for 2021 to $20,500 for 2022. ”
As written, this would mean that if you are 50+, the contribution limits you mention would not apply.
If you delete “for those under 50” the statement would be accurate.
The statement is correct. For those 50+, the total is $26K in 2021.
Is this statement true? :
A Roth IRA conversion results in taxation of any untaxed amounts in the traditional IRA and requires a five-year holding period before earnings can be withdrawn tax-free; subsequent conversions will require their own five-year holding period. In addition, earnings distributions prior to age 59½ are subject to an early-withdrawal penalty.
I did not know subsequent conversions reset their own 5 year clock(for the earnings). Who keeps track of this and how. Would it make sense then to get this done quickly (not waiting to 72 years old)? Thanks.
Sorry.
Good question on who keeps track of it. I bet the answer is just you.
Thanks for reply, So does the 5 year clock get reset on earning for each conversion?
If so, wouldn’t it make sense to start converting sooner rather than later? One of my plans was to wait till closer to 72, which if I have to wait till 77 to withdraw earning is a long time.
Thanks.
Yes and yes.
But let’s be honest, you don’t need all that money the instant you retire. You have other money. In fact, Roth money may be the last money you spend.
Very useful data (and well ahead of the IRS release). Good for planning ahead to minimize one’s tax bill.
Do you know when irs.gov will officially announce the contribution limits for 2022? Thanks, and great information!
I would expect it sometime in November. They base it on inflation from Oct 1 to Oct 1 so they’ve got the data now.
Thank you very much. I find that fiscal year weird for calculating inflation. Good to know.
Looks like MarketWatch is reporting that the IRS made it official this morning about 2022 contribution rates, they just have not updated their site quite yet. https://www.marketwatch.com/story/youll-be-able-to-put-more-money-in-your-401-k-next-year-11636061602?&mod=home-page
Thanks for sharing. It’s that time of year.
I’m hoping someone can help me out with an issue I think my wife may have in regards to the $58k limit on 401(a) and 403(b) accounts.
My wife is a hospitalist at a public hospital in Ohio. At public hospitals in Ohio, you are required to contribute to a state pension plan and at her specific hospital, she is also eligible to contribute to a 457(b) and 403(b), which we were pretty pumped about. I have since realized that the pension account is technically a 401(a) (I think). That becomes an issue because now the combined limit for 401(a) and 403(b) accounts comes into play, which I was not expecting.
To make matters more confusing, my wife’s pension contribution hit the $58k limit for 2021 on this last paycheck in December. When that happened, the employer automatically stopped the contributions to that account and contributed the excess to a 415(m), which I had no idea existed. Some quick googling this morning suggests this account exists for public employees for the sole purpose of being able to contribute to deferred compensation plans above the $58k limit, and is more of a recruitment perk for public service than anything else.
So I have two questions, as I’m sure she can’t be the only person to face this issue.
1) Does anyone else who might have experienced this issue have any advice from their own learnings? The automation involved in capping the pension at $58k and automatically contributing to a 415(m) suggests someone at the hospital has thought this out, but it would then seem strange that they wouldn’t include a 403(b) contribution in that calculation. So part of me is hoping I’m wrong about all of this.
2) Since it seems the sole purpose of a 415(m) is to allow public employees to contribute to deferred compensation accounts beyond the 415(c) limit, I was wondering if she should then be able to just move an additional $19,500 of the employer contribution to the pension fund to this new 415(m) account, such that her 401(a) + 403(b) would then equal the $58k limit. This is essentially what was done on her last paycheck for the pension contribution in excess of the limit.
Thanks in advance for any advice. I thought I was on top of all of this, but now I fear I’ve made a mistake.
1. Wow. 11 years of doing this and you’ve found an account I haven’t yet heard of. A quick Google search finds this:
A 415(m) plan is a type of nonqualified deferred compensation plan offered by public employers (e.g., state and local governments and their agencies, including public schools, colleges and universities). The technical title for these plans is “qualified governmental excess benefit arrangement” under Internal Revenue Code Section [IRC § 415(m)].
415(m) excess benefit plans are generally used to allow eligible public employees to set aside contributions over and above the contribution/benefit limits of IRC §415 that apply to qualified plans. The sponsoring institution owns the assets but the employees have a vested interest in the benefits. In the event of employer bankruptcy, assets are subject to the claims of the employer’s creditors.
Very strange. Now someone pointed out to me just the other day (I think in a comment on this thread) that the 401a and 401k contribution limits are separate, so perhaps the 403b and 401a limits are also separate.
Ahhh, yes. Here it is: https://www.irs.gov/retirement-plans/issue-snapshot-403b-plan-application-of-irc-section-415c-when-a-403b-plan-is-aggregated-with-a-section-401a-defined-contribution-plan
Basically, a $58K limit (2021) for the 401(a) and a separate $58K limit for the 403(b).
Guess I better get this post corrected.
Thank you for putting them all together in such a comprehensive and easy-to-understand way. I hadn’t even considered 2022 at the time. You saved me from having to trawl through the IRS website and for people search engine.
It’s fantastic to learn that I’ll be able to invest more than $61,000 in tax-advantaged accounts. Any physician who performs this consistently over time will amass significant riches.
Thank you very much for the follow up. This was a big relief!
The part about the 415(m) being an asset of the sponsoring institution isn’t ideal, but if her specific institution went bankrupt, I think there would have to be bigger problems going on in the world. But the chance is not zero I suppose.
Thanks again for all you do Jim.
What is the absolute maximum match one can get from TSP in one year? I think it’s $305,000 (if you make that or more) x 5%? I’ve seen other numbers like 40,000 but I don’t see how you get there? Can you get just as much if you work only part of a year? thanks!!
I think it’s the first, but don’t quote me on it.