Advisors: A downloadable version of our Annual Plan Limits is available here.
2023 Annual Plan Limits |
2023 |
2022 |
2021 |
| Contribution and Benefit Limits | |||
|---|---|---|---|
| Defined Contribution Plans | $66,000 | $61,000 | $58,000 |
| Defined Benefit/Cash Balance Plan - Annuity Limit | $265,000 | $245,000 | $230,000 |
| Cash Balance Maximum Lump Sum | $3,400,000 | $3,150,000 | $3,000,000 |
| 401(k), 403(b) and 457 Plan Elective Deferrals | $22,500 | $20,500 | $19,500 |
| SIMPLE Plan Elective Deferrals | $15,500 | $14,000 | $13,500 |
| IRA (Traditional and Roth) | $6,500 | $6,000 | $6,000 |
| Qualified Longevity Annuity Contract (QLAC) | $155,000 | $145,000 | $135,000 |
| ESOP amount to determine lengthening of the 5-year Distribution Rule | $265,000 | $245,000 | $230,000 |
| ESOP Maximum Balance subject to the 5-year Distribution Rule | $1,330,000 | $1,230,000 | $1,165,000 |
| Catch-Up Contributions | |||
| 401(k), 403(b) and 457 Plans | $7,500 | $6,500 | $6,500 |
| SIMPLE Plans | $3,500 | $3,000 | $3,000 |
| IRA | $1,000 | $1,000 | $1,000 |
| Other | |||
| Maximum Considered Compensation | $330,000 | $305,000 | $290,000 |
| Social Security Taxable Wage Base | $160,200 | $147,000 | $142,800 |
| Definition of Highly Compensated Employee | $150,000 | $135,000 | $130,000 |
| Definition of Key Employee | $215,000 | $200,000 | $185,000 |
| SEP Minimum Compensation | $750 | $650 | $650 |
| Defined Benefit Plan Single Employer Flat PBGC Rate Premium | $96 | $88 | $86 |
| Defined Benefit Plan Single Employer Variable Rate Premiums/$1,000 UVB | $52 | $48 | $46 |
Additional Information:
• The term “annual additions” generally means the sum for any year of employer contributions, employee contributions, and forfeitures.
• For plans that include salary deferral features, individuals who are age 50 and older by the end of the calendar year may make catch-up contributions in addition to the annual addition limit, if catch-up contributions are permitted under the plan.
Notes for off-calendar plan years:
• Deferral limits are on a calendar year basis, regardless of plan year.
• Use the taxable wage base (TWB) in effect at the beginning of the plan year.
• Use the annual compensation limit in effect at the beginning of the plan year.
• Use the annual additions limit in effect at the end of the plan year.
