* 457 Elective deferrals includes both employee and employer contributions
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.
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