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Insight

10/24/2022

2023 IRS Limits Announced

By Lyn Domenick

The IRS has announced the 2023 cost of living adjustments to qualified plan limits. As expected, many of the limits increased substantially compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.

2023 2022 2021
Annual Compensation 330,000 305,000 290,000
Elective Deferrals 22,500 20,500 19,500
Catch-up Contributions 7,500 6,500 6,500
Defined Contribution Limit 66,000 61,000 58,000
ESOP Distribution Limits 1,330,000
265,000		 1,230,000
245,000		 1,165,000
230,000
Defined Benefit Limit 265,000 245,000 230,000
HCE Threshold 150,000 135,000 130,000
Key Employee 215,000 200,000 185,000
457 Elective Deferrals 22,500 20,500 19,500
Taxable Wage Base 160,200 147,000 142,800

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