Each year the government adjusts the limits for retirement plans and Social Security to reflect cost-of-living adjustments. The IRS has released the retirement contribution limits for 2023 and there are noteworthy increases.
Contribution and Benefit Limits | 2023 | 2022 | Increase |
401(k), Roth 401(k), and 403(b) | $22,500 | $20,500 | $2,000 |
401(k), Roth 401(k), and 403(b) Catch-up Contributions | $7,500 | $6,500 | $1,000 |
3% Safe Harbor Non-Elective Contrib. Maximum | $9,900 | $9,150 | $750 |
4% Safe Harbor Match Contrib. Maximum | $13,200 | $12,200 | $1,000 |
Annual Contribution Limit | $66,000 | $61,000 | $5,000 |
Annual Contribution Limit, incl. Catch-up Contribs. | $73,500 | $67,500 | $6,000 |
SIMPLE IRA Elective Deferrals | $15,500 | $14,000 | $1,500 |
SIMPLE IRA Catch-up Contributions | $3,500 | $3,000 | $500 |
Traditional IRA and Roth IRA Contributions | $6,500 | $6,000 | $500 |
IRA Catch-up Contributions | $1,000 | $1,000 | $0 |
Maximum Plan Compensation | $330,000 | $305,000 | $25,000 |
Social Security Wage Base | $160,200 | $147,000 | $13,200 |
Please contact Johnson O’Connor Retirement Plan Services to review your retirement program so you can take advantage of these increased contribution limits in 2023.