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IRS Announces 2023 Plan Contribution and Benefit Limits

The Internal Revenue Service announcedOpens in a new window cost-of-living adjustments (COLAs) affecting dollar limitations for health savings accounts, pension plans and other retirement-related items for the 2023 tax year. See the chart below for further details.

The highlights of limitations that changed from 2022 to 2023 include the following:

  • The 415(c) contribution limit applicable to defined contribution retirement plans increased from $61,000 to $66,000.
  • The 401(a)(17) annual compensation limit applicable to retirement plans increased from $305,000 to $330,000.

See the chart below for further details for the new 2023 limits, as well as those for recent tax years.

 

  2023  2022 2021 2020
Retirement plans        
Annual Compensation Limits - 401(a)(17)/404(l) 330,000 305,000 290,000 285,000
Elective Deferrals 401(k)/403(b) - 402(g)(1) 22,500 20,500 19,500 19,500
Catch-up Contributions - 414(v)(2)(B)(i) 7,500 6,500 6,500 6,500
*457 Elective Deferrals - 457(e)(15) 22,500 20,500 19,500 19,500
Defined Contribution Limits - 415(c)(1)(A) 66,000 61,000 58,000 57,000
Annual Compensation Grandfathered Governmental Plans 490,000 450,000 430,000 425,000
Other        
Highly Compensated Employee Threshold - 414(q)(1)(B) 150,000 135,000 130,000 130,000
Defined Benefit Limits - 415(b)(1)(A) 265,000 245,000 230,000 230,000
Key Employee - 416(i)(1)(A)(i) 215,000 200,000 185,000 185,000
Social Security Taxable Wage Base 160,200 147,000 142,800 137,700
Health savings accounts(hsa)        
HSA Self-only Coverage Contribution Limits - 223(b)(2)(A) 3,850 3,650 3,600 3,550
HSA Family Coverage Contribution Limits - 223(b)(2)(B) 7,750 7,300 7,200 7,100
HSA Catch Up Contributions (age 55+) 1,000 1,000 1,000 1,000
IRAs        
IRA Contribution Limit - 219(b)(5)(A) 6,500 6,000 6,000 6,000
IRA Catch-Up Contributions - 219(b)(5)(B) 1,000 1,000 1,000 1,000
sep        
SEP Minimum Compensation - 408(k)(2)(C) 750 650 650 600
SEP Maximum Compensation - 408(k)(3)(C) 330,000 305,000 290,000 285,000
Simple plans        
SIMPLE Maximum Contributions - 408(p)(2)(E) 15,500 14,000 13,500 13,500
SIMPLE Catch-up Contributions - 414(v)(2)(B)(i) 3,500 3,000 3,000 3,000

All figures in US dollars.

Source: www.irs.gov Opens in a new window

* 457 Elective deferrals includes both employee and employer contributions

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