The IRS has announced cost of living adjustments (COLA) applicable to qualified retirement plans for 2023. Following is an updated summary of those adjustments.
For more information, please contact Therese Cheevers at [email protected] or 844.4WINDES (844.494.6337).
2022 | 2023 | ||||
Maximum Compensation | $ | 305,000 | $ | 330,000 | |
Maximum Contribution Limit | 61,000 | 66,000 | |||
401(k) Salary Deferral Annual Limit | 20,500 | 22,500 | |||
SIMPLE Retirement Accounts | 14,000 | 15,500 | |||
457/403(b) Salary Deferral Annual Limit | 20,500 | 22,500 | |||
Defined Benefit Annual Limit | 245,000 | 265,000 | |||
Covered Compensation Limits – Social Security | 147,000 | 160,200 | |||
Catch-up Contributions 401(k)/403(b)/457 | 6,500 | 7,500 | |||
Catch-up Contributions SIMPLE 401(k) | 3,000 | 3,500 | |||
Highly Compensated Employee | 135,000 | 150,000 | |||
IRA Contribution Limit | 6,000 | 6,500 | |||
SEP Threshold | 650 | 750 |
