The IRS has announced the retirement plan limitations for 2023. Limitations which apply to Pension Plans (including Profit Sharing and 401(k) Plans) for the Year 2023 are:
| Annual Compensation Limit for Plan purposes | $330,000 (increased from $305,000) |
| Highly Compensated Employee Threshold | $150,000 (increased from $135,000) |
| Maximum Elective Deferrals for 401(k) | $ 22,500 (increased from $20,500) |
| Catch-Up Contributions for employees age 50+ | $ 7,500 (increased from $6,500) |
| Maximum Elective Deferrals for SIMPLE plans | $ 15,500 (increased from $14,000) |
| Catch-Up Contributions for employees age 50+ | $ 3,500 (increased from $3,000) |
| IRA or Roth IRA Limit | $ 6,500 (increased from $6,000) |
| IRA or Roth IRA Catch-Up Limit | $ 1,000 (no change) |
| Social Security Taxable Wage Base | $155,100 (increased from $147,000 |
For clients with 401(k) and Profit Sharing Plans, the “maximum annual addition” to any participant for combined plans is $66,000 (increased from $61,000). Maximum annual additions do not include Catch-up Contributions.