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Higher contribution limits for retirement savings plans

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



401(k) plans age 50 and older catch-up contribution



SIMPLE 401(k) plans deferral contribution



SIMPLE 401(k) plans catch-up contribution



Total contributions for all plans (employee and employer) and forfeitures/reallocations (but excluding catch-up contributions, if any)



Highly compensated employee (HCE)2 threshold



Qualified plan maximum compensation



Social Security taxable wage base



You can also download the full list of changes and updates here.

  1. Represents the additional contribution limit for participants who are age 50 and older, once other contribution limits, such as 401(k) plan elective deferral contribution limit, the ADP testing limit or the annual additions limit, have been met. If the ADP test is failed, a portion of a Highly Compensated Employee’s (an “HCE’s”) elective deferrals may, under certain circumstances, be treated as catch-up contributions.
  2. HCEs are generally those with:  
    • Greater than 5% ownership in the firm during the plan year being tested or preceding year (in general, an individual is treated as owning any interest that is owned by his/her spouse, children, grandchildren or parents), or
    • Compensation in excess of $150,000, as indexed (for calendar year plans) in the plan year preceding the plan year that is being tested.
Caution: This issue is complicated. See the Compliance and Communications section of ePAG for more information on applying this limit.
*Note: There may be other limitations in place for self-employed individuals. The Program can calculate contributions to ensure that all limits are properly met.


Looking to relinquish some administrative duties?


Are your employees’ addresses accurate? Learn more on how to update.

Take advantage of Sponsor Web!

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.



Recent system changes

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Looking to relinquish some administrative duties?

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Important Reminder!

The Program’s mailing address changed in September 2021.

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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