The IRS has announced cost of living adjustments (COLA) applicable to qualified retirement plans for 2023. Following is an updated summary of those adjustments.
|
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 |
For more information, please contact Therese Cheevers at tcheevers@windes.com or 844.4WINDES (844.494.6337).
