More DCP savings in 2023

The IRS limits for retirement savings programs like DCP have increased for 2023.

Beginning Jan. 1, you can contribute up to $22,500 per year.

The Deferred Compensation Program, or DCP, is a terrific way to save for retirement. If you are already a DCP participant, now’s a great time to consider increasing your contributions. If you are not a participant, consider signing up. Even a minimum monthly contribution of 1% can add up to big savings over time. Depending on your employer’s payroll, it can take up to 30 days for your account changes to go into effect. So for the new year, you might want to start your changes now!

If you are 50 or older, your DCP savings can increase even more with special catch-up options. Starting January 1, you can contribute up to $30,000 per year

Save more with DCP. If you put $200 a month into your DCP account, your balance could grow to $201,908 in 30 years. The amount you gain will be small at first, but get larger over time.

Here are the gains for a monthly $200 deposit at a 6% rate of return:

·       $8,000 of additional earnings (10 years)

·       $44,000 of additional earnings (20 years)

·       $130,000 of additional earnings (30 years)

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