Each year the Internal Revenue Service announces the cost of living adjustments affecting dollar limitations for pension plans and other retirement related items. The following table is provided to help you determine how much to set aside for retirement planning in 2023.
Compensation Limit for Calculating Contributions
Social Security - Maximum Taxable Wage Base
Highly Compensated Employee (HCE) Determination Threshold
Key Employee/Officer Determination Threshold
Defined Contribution Maximum Limit (all sources)
Maximum Employee Elective Deferrals (401k/403b/457)
Maximum Catch-Up Limit – Age 50+ (401k/403b/457)
Defined Benefit Pension Plan Annual Benefit Limit
SIMPLE Plans - Annual Contribution Limit
SIMPLE Plans Catch-Up Contribution Limit – Age 50+
IRA Contribution Limit
IRA Catch-Up Limit– Age 50+
This information is provided as a courtesy and is not designed to be all encompassing. It is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.