IRS Releases Updated Retirement Plan Contribution Limits

Late last week, the IRS released its annual update for the cost-of-living adjustments for retirement plans. As predicted based on the overall rate of inflation, there are widespread increases for 2023.  As shown below, almost all IRS limits were affected by this year’s cost-of-living adjustments, including catch-up contributions.

Now that the updated amounts have been released, plan sponsors should now have all the required information needed to complete their annual notices (see our prior blog post on notices). If you have questions about the changes to the retirement plan limits or annual notices, please reach out to any one in our Employee Benefits Group.

2023 2022
ELECTIVE DEFERRAL ANNUAL LIMITS
    401(k), 403(b) and SEPs $22,500 $20,500
    457 Plans $22,500 $20,500
    SIMPLE IRAs and 401(k)s $15,500 $14,000
CATCH-UP CONTRIBUTIONS
    401(k), 403(b) and SEPs $7,500 $6,500
    SIMPLE IRAs and 401(k)s $3,500 $3,000
COMPENSATION LIMIT $330,000 $305,000
DEFINED BENEFIT PLAN LIMIT $265,000 $245,000
DEFINED CONTRIBUTION PLAN LIMIT $66,000 $61,000
HIGHLY COMPENSATED EMPLOYEE $150,000 $135,000
KEY EMPLOYEE $215,000 $200,000
SOCIAL SECURITY TAXABLE WAGE BASE $160,200 $147,000

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