Navigating 2023: Financial Planning Reminders


Navigating a new year can be tricky, especially as it relates to your financial situation. Here are some important reminders on retirement and health plan contributions, adjustments to Social Security benefits and Medicare premiums, beneficiary designations, and IRA contribution eligibility to help guide you through 2023.

Review Retirement and Health Savings Plan Contributions

While many of us tend to "set and forget" our retirement and health plan contributions, now is a great time to review your current contribution levels. Employers often institute compensation changes at the beginning of the year which could have a direct impact on your ability to contribute to these accounts. Factors to consider when determining contribution levels include lifestyle expenses, pre-tax vs. post-tax (Roth) contributions, and liquidity needs.

As a reminder, here are the contribution limits for common employer-sponsored retirement plans and health savings accounts:

401(k), 403(b), 457(b) elective deferrals:


Catch-up Contributions Limit (age 50+)


Health Savings Account (Single):


Health Savings Account (Family):


Catch-up Contributions Limit (age 55+):








Tens of millions of Americans receive Social Security benefits, are enrolled in Medicare, or both. As of December 2022, more than 70 million people were receiving Social Security benefits, and around 65 million were enrolled in Medicare in 2022. For the roughly 70% of Medicare enrollees who are also collecting Social Security, their Medicare Part B premiums are automatically deducted from their Social Security payments.

Each year, adjustments are made to Social Security benefits to account for inflation, as are Medicare premiums to reflect changing healthcare costs. In the fall, the Social Security Administration announces the COLA (cost of living adjustment) that will affect Social Security benefits payable in January the following year. For 2023, this increase is 8.7% — the largest increase in 40 years. Occasionally, there are years when there is no increase, but the SSA has never reduced benefits, or negative COLA.

Similarly, the Center for Medicare and Medicaid Services annoucnes each fall the adjustments to Medicare Part B premiums, which take effect the following year. For 2023, Part B premiums have decreased. Please note that Medicare premiums are determined by income levels, and premiums could increase or decrease based on year-over-year changes in income.

Beneficiary Designations

Beneficiary designations may overrule instructions in your will or trusts, so it is crucial to ensure they are up to date. Work with your trusted advisor to verify all retirement plan and insurance policy beneficiaries reflect your current wishes, particularly if you have had any recent life changes such as marriage, divorce, or a birth or death in the family.

Eligibility for Individual Retirement Account Contributions for 2022 Tax Filing

Tax season is upon us and anyone with earned income from 2022 has until April 18, 2023, to decide whether to contribute to either a Roth IRA or Traditional IRA. There are specific rules related to an individual or spouse's participation in an employer retirement plan as well as income limitations to be aware of before an overcontribution is made that could lead to tax penalties. Before filing your return, be sure to review your Adjusted Gross Income in conjunction with the income phaseout table below to determine your eligibility to make a tax-deductible contribution. 

  • IRA deduction phaseout for active participants:
Married Filing Jointly
Married Filing Separately
Non-Active Participant Married to Active Participant $204,000-$214,000
  • Roth IRA phaseout:
Married Filing Jointly
For 2022, eligible individuals can contribute $6,000 to either a Roth IRA or a Traditional IRA if they are under the age of 50. Eligible individuals 50 and older can contribute $7,000 to a Roth IRA or Traditional IRA. Spouses are also eligible to make a spousal contribution to their Roth IRA or Traditional IRA (at the same maximum contribution levels mentioned directly above) even if they did not have earned income but you did.
Lastly, even if your income is higher than the Roth IRA phaseout listed above you may still be eligible to contribute to a Roth IRA using creative tax planning. Ask your advisor if you are a candidate for "Backdoor" Roth contributions.
Donaldson Capital Management is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. For more information please visit: and search for our firm name.   This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of publication and are subject to change without notice. Past performance is not indicative of future results.

This report was prepared by Donaldson Capital Management, LLC, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Information in these materials are from sources Donaldson Capital Management, LLC deems reliable, however we do not attest to their accuracy.

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