Below are the Cost of Living Adjustments and Contribution Limits issued by the IRS for 2023. Please note, a number of the contribution limits have changed from 2022.
2023 Limits* (for administration purposes) |
2022 Limits (for testing purposes) |
|
401(k) plans elective deferral contribution |
$22,500 |
$20,500 |
401(k) plans age 50 and older catch-up contribution |
$7,5001 |
$6,5001 |
SIMPLE 401(k) plans deferral contribution |
$15,500 |
$14,000 |
SIMPLE 401(k) plans catch-up contribution |
$3,500 |
$3,000 |
Total contributions for all plans (employee and employer) and forfeitures/reallocations (but excluding catch-up contributions, if any) |
$66,000 |
$61,000 |
Highly compensated employee (HCE)2 threshold |
$150,000 |
$135,000 |
Qualified plan maximum compensation |
$330,000 |
$305,000 |
Social Security taxable wage base |
$160,200 |
$147,000 |
You can also download the full list of changes and updates here.
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CALENDAR REMINDERS
Sponsor Web is a suite of web-based applications for Plan Administrators to manage plan activity and participant information (e.g., payroll updates, participant data, on-demand reports, and plan information). Visit the Sponsor Web page for more information. If you haven’t set up your Sponsor Web access yet, submit the Sponsor Web Activation Request Form today! You will receive your login credentials 4 – 6 weeks after submitting the form.
CURRENT ARTICLES // JANUARY 2023
Take action, if you haven’t already, to change your records to reflect the new Program mailing address. Learn more today.
ABA Retirement Funds Program I P.O. Box 990073 I Hartford, CT 06199
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