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 |