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Employee Benefit Services

2023 Cost of Living Adjustments for Retirement Plans

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).

 

Therese Cheevers
Therese Cheevers, APA, ERPA

Partner – Chair, Employee Benefit Services

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