top of page

Retirement Plan Limitations: 2023

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)

Recent Posts

See All

SECURE Act 2.0: 401(k) Solitaire

Deductions for employer contributions to defined contribution plans are ordinarily limited to 25 percent of the participants’ aggregate compensation, but that limitation doesn’t apply to contributions

IRA Contribution Limitations: 2023

Like the various plan limitations described in the post below, the limitations that apply to IRA and Roth IRA contributions increased significantly between 2022 and 2023. These changes, too, are found

Commentaires


bottom of page