The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023. The limits, and Notice 2022-55, are available here: www.irs.gov/pub/irs-drop/n-22-55.pdf
| Limit | 2023 | 2022 |
| Dollar Limit on Elective Deferrals | $22,500 | $20,500 |
| Catch-up Contribution Limit | $7,500 | $6,500 |
| Annual Compensation Limit | $330,000 | $305,000 |
| Section 415 Annual Additions Limit | $66,000 | $61,000 |
| Highly-Compensated Employee | $150,000 | $135,000 |
| Key Employee (Officers) | $215,000 | $200,000 |
Highlights include:
- The 401(k) and 403(b) Maximum Annual Elective Deferral Limit has increased to $22,500
- The Catch-up Contribution Limit for individuals aged 50 or over has increased to $7,500
To make it easy to communicate these changes to your employees. Please click here to access a flyer that summarizes the 2023 and 2022 limits.
These changes provide an opportunity for your company to encourage positive saving behavior for your employees.
For the full details on the limit changes click here to visit the IRS website.
You may want to make some adjustments, to your retirement strategy. We are here to help, I welcome the opportunity. Feel free to reach out to us at 800.307.0376, click here to schedule a time for us to connect.
We are happy to help, if you have any questions or would like additional insight, please feel free to reach out to me at joe@diversifiedfa.com or 800.307.0376.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.