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 Contributions | 2022 Limit | 2023 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 | $6,500 $3,000 | $7,500 $3,500 |
| 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 | $135,000* | $150,000** |
| Deductible amount for individual making qualified retirement contributions to an IRA §219(b)(5)(A) | $6,000 | $6,500 |
| 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.
