Retirement Plan Limitations for 2023
- Published
- Oct 24, 2022
- Share
As an ongoing service to our clients, EisnerAmper is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on October 21 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2023. Several of the limits have changed from 2022, as noted below.
| Code Section | 2023 | 2022 | 2021 |
|---|---|---|---|
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $6,500 | $6,000 | $6,000 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | $1,000 | $1,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $750 | $650 | $650 |
| SEP Maximum Compensation – 408(k)(3)(C) | $330,000 | $305,000 | $290,000 |
| 401(k), 403(b), 457, Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $330,000 | $305,000 | $290,000 |
| Elective Deferrals – 402(g)(1), 457(e)(15) | $22,500 | $20,500 | $19,500 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $7,500 | $6,500 | $6,500 |
| Defined Contribution Limits – 415(c)(1)(A) | $66,000 | $61,000 | $57,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $150,000 | $135,000 | $130,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $265,000 | $245,000 | $230,000 |
| Key Employee – 416(i)(1)(A)(i) | $215,000 | $200,000 | $185,000 |
| Social Security Wage Base | $160,200 | $147,000 | $142,800 |
FOR RELATED CONTENT, PLEASE SEE:
What's on Your Mind?
Peter Alwardt
Peter Alwardt is a Partner and the National Tax Leader of Employee Benefit Plans, specializing in employee benefits, tax and ERISA issues for domestic and international clients. He is a member of the American Institute of Certified Public Accountants and NY State Society of CPAs.
Start a conversation with Peter
Receive the latest business insights, analysis, and perspectives from EisnerAmper professionals.