2023 Cost of Living Adjustments – Pension and Retirement Plans

2023 Cost of Living Adjustments – Pension and Retirement Plans

The IRS released the 2023 cost of living adjustments (IRS Notice 2022-55) applicable to defined benefit and defined contribution plans (highlights below).

2023

2022

Defined benefit plan annual limit

$265,000

$245,000

Defined contribution plan annual limit

$66,000

$61,000

Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans)

$22,500

$20,500

Maximum deferral limit for 457 plans

$22,500

$20,500

>Age 50 catch-up contribution limit to 401(k), 403(b)

or 457(b) plans

$7,500

$6,500

Maximum deferral limit for SIMPLE plans

$15,500

$14,000

>Age 50 catch-up contribution limit to SIMPLEplans

$3,500

$3,000

Minimum compensation considered in determining

eligibility for a SEP (simplified employee pension)

$750

$650

Threshold for highly compensated employee (HCE)

$150,000

$135,000

Key employee compensation limit for top heavy

plan purposes

$215,000

$200,000

Annual compensation limit

$330,000

$305,000


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

2023 Cost of Living Adjustments – Pension and Retirement Planshttps://www.cbiz.com/Portals/0/Images/Pension and Retirement Plan COLA.jpg?ver=GQfVY5HI4hnkrPeZLMj6GA%3d%3dThe IRS released the 2023 cost of living adjustments (IRS Notice 2022-55) applicable to defined benefit and defined contribution plans.2022-11-02T19:00:00-05:00The IRS released the 2023 cost of living adjustments (IRS Notice 2022-55)applicable to defined benefit and defined contribution plans.Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo