The Internal Revenue Service has announced the 2023 cost-of-living adjustments for various limits affecting employee benefit plans. The more common limits are detailed below for 2022 and 2023. Due to the unprecedented inflationary environment, the limits have increased by record amounts.
| 2023 | 2022 | |
| 401(k) & 403(b) Elective Deferrals | $22,500 | $20,500 |
| Catch-Up Contribution for participants age 50 and over | $7,500 | $6,500 |
| Defined Contribution Plans-IRC 415(Including SEP and Keogh Plans) | $66,000 | $61,000 |
| Maximum Benefit for Defined Benefit PlansNote: This is not the maximum contribution, it is the maximum benefit that can be funded. | $265,000 | $245,000 |
SIMPLE Retirement Plans
| 2023 | 2022 | |
| Elective Deferrals | $15,000 | $14,000 |
| Catch-Up Contribution for Participants Age 50 and over | $3,500 | $3,000 |
| Maximum Annual Compensation for Determining Contributions and Benefits | $330,000 | $305,000 |
| Compensation Limit for Key Employee Determination | $215,000 | $200,000 |
| Compensation Limit for Highly Compensated Determination | $150,000 | $135,000 |
| IRA Contributions | $6,500 | $6,000 |
| IRA Catch-Up Contribution | $1,000 | $1,000 |
A detailed listing of all of the adjusted limitations can be found here.
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