The high rate of inflation in 2022, reminiscent of the 1970's, generated striking increases in the limitations that affect retirement plans in 2023. For the complete list, see Notice 2022-55. Here are the highlights:
Maximum annual addition (defined contribution plans) (IRC §415(c)): $66,000 (was $61,000)
Maximum elective deferral (401(k) plans, 403(b) plans, SARSEP's) (IRC §402(g)): $22,500 (was $20,500)
Additional elective deferral for individuals who are at least 50 years old on December 31, 2023 (401(k) plans, 403(b) plans, SARSEP's) (IRC §414(v)(2)(B)(i): $7,500 (was $6,500)
Maximum salary reduction contribution (SIMPLE IRA Plan) (IRC §408(p)(2)(E)): $15,500 (was $14,000)
Additional salary reduction contribution for individuals who are at least 50 years old on December 31, 2023 (SIMPLE IRA Plan) (IRC §414(v)(2)(B)(ii)): $3,500 (was $3,000)
Maximum projected annual benefit at ages 62 through 65 (defined benefit plans) (IRC §415(b)): $265,000 (was $245,000) (limitation adjusted for benefit commencement at other ages or in forms other than a life annuity or qualified joint and survivor annuity)
Maximum compensation that a qualified plan or 403(b) plan may take into account in determining benefits (IRC §401(a)(17)): $330,000 (was $305,000)
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