Effective January 1, 2023, the IRS is implementing some retirement contribution and benefit cost of living adjustments. We wanted to share some highlights.
Click here to compare limits for the past year, current year, and upcoming year. The retirement limits that have changed include:
- The elective deferral limit for participants in 401(k) and 403(b) plans will increase to $22,500. The catch-up contribution limit will increase to $7,500.
- The deferral limit for 457(b) plans of state and local governments and tax-exempt organizations will increase to $22,500.
- The deferral limit for individuals in a SIMPLE IRA will increase to $15,500. The catch-up contribution limit will increase to $3,500.
- The annual addition limit for defined contribution plans will increase to $66,000.
- The highly compensated employee compensation limit will increase to $150,000.
- The key employee compensation limit will increase to $215,000.
- The annual compensation limit will increase to $330,000.
- The Social Security wage base will increase to $160,200.