2023 Retirement COLA Limits
With the release of IRS Notice 2022-55, the IRS has set the retirement plan limits for the 2023 plan year. On October 21, 2022, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations (“COLA Limits”) for pension plans and other retirement-related items for the tax year 2023.
Type of Limitation | 2023 | 2022 |
---|---|---|
401(k), 403(b), 457 Maximum Annual Elective Deferral Limit | $22,500 | $20,500 |
401(k), 403(b), 457 Catch-Up Contribution Limit (Age 50+) | $7,500 | $6,500 |
Annual Defined Contribution Limit | $66,000 | $61,000 |
Annual Defined Benefit Plan Limit | $265,000 | $245,000 |
Annual Compensation Limit (deduction, benefit, contribution) | $330,000 | $305,000 |
SIMPLE Contribution Limit | $15,500 | $14,000 |
SIMPLE Catch-Up Contributions (Age 50+) | $3,500 | $3,000 |
Highly Compensated Employee Threshold | $150,000 | $135,000 |
Key Employee/Officer Compensation in a Top-Heavy Plan | $215,000 | $200,000 |
Income Subject to Social Security | $160,200 | $147,000 |
For full details on the pension plan limits for 2023, visit the IRS website. Annual contribution rates are based on the IRS 2023 retirement plan limitations and are subject to change.