business 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 Limits202320222021IRA Contribution Limit$6,500$6,000$6,000IRA Catch-Up Contributions$1,000$1,000$1,000 401(k), 457 and 403(b) Contribution Limits202320222021401(k), 457 and 403(b) maximum annual elective deferral limit$22,500$20,500$19,500401(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. 202320222021Annual Compensation Limit$330,000$305,000$290,000 SIMPLE- Savings Incentive Match Plan for Employees Contribution Limits202320222021SIMPLE employee deferrals$15,500$14,000$13,500SIMPLE catch up deferrals$3,500$3,000$3,000 Simplified Employee Pension (SEP IRA) Contribution Limits202320222021SEP annual compensation limit$330,000$305,000$290,000SEP minimum compensation$750$650$650SEP maximum contribution$66,000$61,000$58,000 Phase-out ranges for 2022: Traditional IRA MAGI Limits202320222021Married filing jointly; a spouse who participates in an employer-sponsored plan$116,000- $136,000$109,000- $129,000$105,000-$125,000Married filing jointly; a spouse who does not participate in an employer sponsored plan$218,000- $228,000$204,000- $214,000$198,000-$208,000Single 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 Limits202320222021Married filing jointly$218,000- $228,000$204,000- $214,000$198,000-$208,000Single 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? 202320222021Social Security Wage Base$160,200$147,000$142,800 Interested in learning more about tax-advantaged retirement saving strategies? Contact us for more information.
