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2023 Cost of Living Adjustments

On October 21, 2022 the Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023. 

There are eight significant changes that will take place for 2023: 

    • Annual elective deferrals limits for 401(k), 403(b) and 457 plans will increase from $20,500 to $22,500
    • The Catch-up Contribution limit will increase from $6,500 to $7,500
    • Annual defined contribution limit will increase from $61,000 to $66,000
    • Defined Benefit maximum benefit limit will increase from $245,000 to $265,000
    • Annual compensation limit will increase from $305,000 to $330,000
    • Highly Compensated Employee limit will increase from $135,000 to $150,000
    • Top Heavy Key Employee limit will increase from $200,000 to $215,000
    • Social Security Wage Base limit will increase from $147,000 to $160,200


To learn more about the Fiduciary Plan Partners Team and Service deliverables:
https://www.fiduciarypp.com/who-we-are/

For more information about retirement plan limits, please visit www.irs.gov/Retirement-Plans .

This information was obtained from sources we deem to be reliable, but we make no guarantee as to its accuracy. All information is subject to change without notice and there can be no assurance that any of the views or opinions expressed herein will come to pass. Past performance may not be indicative of future results and may have been impacted by market events and economic conditions that will not endure going forward. No portion of this commentary is to be construed as a solicitation or recommendation to buy or sell a security, or the provision of personalized investment, tax or legal advice. Any reference to a market index is included for illustrative purposes only, as an index is not a security in which an investment can be made.  

Fiduciary Plan Partners 
info@fiduciarypp.com
Call 908-233-8100 Option 2

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