Sunday, May 26, 2024

IRS Retirement Pension Plans Limits 2023 & 2022 Chart

The IRS recently announced that the 2023 contribution limit for 401(k) plans will increase to $22,500 which is 9 percent more than last year 2022 contribution limit for 401(k) plan.Similaraly , a whole lots of cost‑of‑living adjustmentsto various pension plans and other retirement-related savings are done for the tax year 2023. We have used this chart for creating a contribution limit calculator for self employed person.

Retirement Pension Plans Limits 2023 & 2022

Provision2023 limit2022 Limits
Maximum 401(k) contributions$22,500$20,500
Maximum compensation limit$330,000$305,000
Highly compensated employees
  Earning (in previous year) more than

$150,000
$135,000
Key employee compensation limit$215,000$200,000
Annual contribution limit for defined contribution plans$66,000$61,000
Annual benefit limit for defined benefit plans$265,000$245,000
SIMPLE plan limit$15,000$14,000
Age 50 and older catch-up contribution limit
All plans other than SIMPLE plans
SIMPLE plans

$7,500
$3,500
$6,500
$3,500
Annual contribution limit for Section 457 deferred compensation plans (government and tax-exempt organizations)$22,500$20,500
Employee stock ownership plan (ESOP)
Maximum account balance subject to five-year distribution period
Each incremental dollar amount in excess of account balance that adds one year to five-year distribution period

$1,330,000
$265,000
$12,30,000
$245,000
Simplified employee pension (SEP) plans
Contributions must be made for employees earning at least

$750
$650
409A minimum specified employee (officer) compensation requirement$215,000$200,000
409A involuntary separation pay exception$660,000$600,000

If you have questions about the information covered in this alert, please contact a member of your Cooley team or one of the lawyers from the compensation & benefits group listed below.

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