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IRS Limits
On Oct. 21, 2022, the IRS released the cost-of-living adjustments for various retirement plan limitations that will take effect on Jan. 1, 2023. Selected 2023 and 2022 annual limits are provided below.
| Provision | 2022 | 2023 |
|---|---|---|
| DC Plan 415(c)(1)(A) Additions | $61,000 | $66,000 |
| 401(k)/403(b) SARSEP Elective Deferrals | $20,500 | $22,500 |
| 457 Deferrals | $20,500 | $22,500 |
| Age 50 Catch-Ups for 401(k), 403(b) and 457 Plans | $6,500 | $7,500 |
| Top Heavy Key Employee Dollar Limit | $200,000 | $215,000 |
| Highly Compensated Employee Income Definition | $135,000 | $150,000 |
| Compensation Limit for Contribution Purposes in accordance with IRC Section 401(a)(17) for Non-Gov. Plan Sponsors | $305,000 | $330,000 |
| Compensation Limit for Contribution Purposes in accordance with IRC Section 401(a)(17) for Governmental Plan Sponsors | $450,000 | $490,000 |
| Maximum Adjusted Gross Income for Saver’s Credit | $68,000 (joint) $34,000 (single) $51,000 (HoH) |
$73,000 (joint) $36,500 (single) $54,750 (HoH) |
| SIMPLE Plan Contribution Limits | $14,000 | $15,500 |
| Compensation for SEPs | $650 | $750 |
| Earning Subject to OASDI Tax | $147,000 | $160,200 |
Source: IRS Notice 2022-55 and Notice 2021-61.
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