Extra! Extra! The IRS has released the 2023 contribution limits. In past years we would list only the limits that changed. With almost everything changing at historic levels, we have provided a few highlights and a look to our historical limitations chart.
The following are some of the key increases to the 2023 limits:
Compensation and Benefit Limits
- Annual compensation limit: $330,000
- Elective Deferrals: 401(k) Plans: $22,500
- Catch-up contribution limit for 401(k) plans: $7,500
- Annual additions limit for defined contribution plans: $66,000
- Annual additions limit for defined benefit plans: $265,000
- Social Security Wage Base: $160,200
Testing Limits
- Highly compensated employee: $150,000
- Key employee based on officer status: $215,000
You can find a chart of these limits from 2014 to 2023 here in the DWC Knowledge Center.