The IRS has announced cost of living adjustments changing dollar limitations for retirement-related items for the tax year 2023. Here are the highlights:
| Plan Limits for the Year | 2023 | 2022 | 2021 |
| 401k, 403b, 457 Elective Deferrals | $22,500 | $20,500 | $19,500 |
| 401k, 403b, 457 Catch-Up Contribution Limit (age 50 or over) | $7,500 | $6,500 | $6,500 |
| Annual Defined Contribution Plan Limit | $66,000 | $61,000 | $58,000 |
| Traditional IRA Contribution Limit |
$6,500 | $6,000 | $6,000 |
| Traditional IRA catch-up Contribution Limit (age 50 or over) | $1,000 | $1,000 | $1,000 |
| HSA Individual Contribution Limit | $3,850 | $3,650 | $3,600 |
| HSA Individual with Family Coverage Contribution Limit | $7,750 | $7,300 | $7,200 |
| SIMPLE Employee Deferrals | $15,500 | $14,000 | $13,500 |
| SIMPLE Catch-Up Deferral | $3,500 | $3,000 | $3,000 |
| Social Security Wage Base | $160,200 | $147,000 | $142,800 |
For a full list of limitations for retirement-related items for tax year 2023, please visit irs.gov.
Sources: Internal Revenue Service Notice 2022-55, Internal Revenue Service Notice 2022-24.
Please note, annual contribution rates are based on the IRS 2023 retirement plan limitations and are subject to change. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice.