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IRS Announces Retirement Plan Limits for 2023

December 7, 2022
Internal Revenue Service Sign

The Internal Revenue Service (IRS) has announced benefit plan limits for 2023. The IRS updates these limits annually to account for inflation. Here are the limits for 2022 and the corresponding limits for 2023.

Benefits and Contributions2022 Limit2023 Limit
Elective deferrals to 401(k), 403(b) and 457(b) plans$20,500$22,500
SIMPLE retirement account salary deferrals$14,000$15,500
Catch-up contributions to:
• 401(k), 403(b) and 457(b) plans (Additional rules may apply to 457(b) plans)
• SIMPLE retirement accounts




Maximum defined contribution plan annual contribution$61,000$66,000
Maximum annual benefit from defined benefit pension plans$245,000$265,000
Maximum annual compensation taken into account$305,000$330,000
Look back year compensation limit for “highly compensated employees”
*For 2023 determinations based on 2022 compensation
**For 2024 determinations based on 2023 compensation
Deductible amount for individual making qualified retirement contributions to an IRA
Dollar limit for “key employees” for top-heavy purposes$200,000$215,000
Social Security taxable wage base$147,000$160,200

Visit www.IRS.gov for more information about retirement plan limits for 2023.

This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.


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