Skip to main content

Site Navigation

Site Search


New Retirement Plan Contribution Limits for 2023

October 31, 2022

401k contribution limits have changed for this Year. Take a look at some adjustments to the phase-out ranges and contribution limits for 2023.

The Internal Revenue Service has issued their annual cost of living adjustments for 401(k) and IRAs, Pension plans, and other retirement related matters. Note some increases amid a recent surge in inflation.

The limits

Individual Retirement Account (Roth and Traditional)

Contribution Limits202320222021
IRA Contribution Limit$6,500$6,000$6,000
IRA Catch-Up Contributions$1,000$1,000$1,000

401(k), 457 and 403(b)

Contribution Limits202320222021
401(k), 457 and 403(b) maximum annual elective deferral limit$22,500$20,500$19,500
401(k), 457 and 403(b) catch up contribution limit for those 50 and over$7,500$6,500$6,500

You can make contributions up to the IRS contribution limits noted above or up to $330,000 in 2023—here’s how that number has changed through the years.

Annual Compensation Limit$330,000$305,000$290,000

SIMPLE- Savings Incentive Match Plan for Employees

Contribution Limits202320222021

SIMPLE employee deferrals

SIMPLE catch up deferrals$3,500$3,000$3,000

Simplified Employee Pension (SEP IRA)

Contribution Limits202320222021
SEP annual compensation limit$330,000$305,000$290,000
SEP minimum compensation$750$650$650
SEP maximum contribution$66,000$61,000$58,000

Phase-out ranges for 2022:

Traditional IRA MAGI Limits202320222021
Married filing jointly; a spouse who participates in an employer-sponsored plan$116,000- $136,000$109,000- $129,000$105,000-$125,000
Married filing jointly; a spouse who does not participate in an employer sponsored plan$218,000- $228,000$204,000- $214,000$198,000-$208,000
Single or Head of Household$73,000- $83,000$68,000- $78,000$66,000- $76,000

For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution.

Roth IRA MAGI Limits202320222021
Married filing jointly$218,000- $228,000$204,000- $214,000$198,000-$208,000
Single or Head of Household$138,000- $153,000$129,000- $144,000$125,000- $140,000

What is the social security wage base for 2023?

Social Security Wage Base$160,200$147,000$142,800

Interested in learning more about tax-advantaged retirement saving strategies?

Contact us for more information.

Stay informed. Get all the latest news delivered straight to your inbox.

Also in Business Blog

up arrow Scroll to Top