IRS Announces Plan Limits for 2023

The Internal Revenue Service recently released cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2023. Below we have highlighted a few of the key limits that impact your plan and plan participants.

  • 401(k) Elective Deferral Contribution Limit: Increased to $22,500, and for individuals age 50 or older, increased to $30,000

  • Defined Contribution Maximum Annual Addition Limit: Increased to $66,000, and for individuals age 50 or older, increased to $73,500

  • Annual Compensation Limit: Increased to $330,000

Robert Martin