2023 Contribution and Benefit Limits
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2023 Contribution and Benefit Limits
By Martin A. Federici, Jr., CEO of MF Advisers, Inc.
With a new year right around the corner, the IRS has released the 2023 contribution and benefit limits for retirement plans. Let’s look at the plans and the limit changes from 2022 to 2023 below:
401(k), 403(b), & 457 maximum annual elective deferral limit
2022 - $20,500
2023 - $22,500
401(k), 403(b), & 457 plans catch-up contribution limit for those age 50 and over
2022 - $6,500
2023 - $7,500
Defined contribution plan annual limit
2022 - Lesser of $61,000 and 100% of compensation
2023 - Lesser of $66,000 and 100% of compensation
Traditional IRA contribution limit
2022 - Lesser of $6,000 and 100% of compensation
2023 - Lesser of $6,500 and 100% of compensation
Traditional IRA catch-up contribution limit for those age 50 and over
2022 - $1,000
2023 - $1,000
Roth IRA contribution limit (income and phase out limits apply depending on tax filing status)
2022 - Lesser of $6,000 and 100% of compensation
2023 - Lesser of $6,500 and 100% of compensation
Roth IRA catch-up contribution limit for those age 50 and over (income and phase out limits apply depending on tax filing status)
2022 - $1,000
2023 - $1,000
SIMPLE maximum annual elective deferral limit
2022 - $14,000
2023 - $15,500
SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for those age 50 and over
2022 - $3,000
2023 - $3,500
Defined Benefit plan annual limit under section 415
2022 - $245,000
2023 - $265,000
Income subject to Social Security tax
2022 - $147,000
2023 - $160,200
Highly Compensated Employee
2022 - $135,000
2023 - $150,000
Key Employee/Officer in a top-heavy plan
2022 - $200,000
2023 - $215,000
Annual allowable compensation limit for deduction, benefit, and contribution purposes
2022 - $305,000
2023 - $330,000
Lastly, some RMD (Required Minimum Distributions) rules were clarified for new non-spouse beneficiary IRAs and the time frame in which you must take those (RMDs must be satisfied every year for no more than TEN (10) years). You’re welcome!
Find an experienced financial advisor who educates clients, works for an RIA firm, earns his/her money from fees (NOT commissions), believes in having an abundance of investment choices for clients, and has the heart & demeanor of a teacher, NOT a salesman, and chances are you’ve found the right financial advisor to help you prepare and plan for your financial goals.
For more information, please visit
https://www.mfadvisers.com, email marty@mfadvisers.com, or call (570) 760-6524.
About MF Advisers, Inc.
MF Advisers, Inc. is a full-service, fee-only RIA firm and fiduciary based in PA & FL specializing in wealth management, investment advice, and financial planning.
With 25+ years of licensed experience, over 10 years of professional education, and an unwavering commitment to improving your financial situation, MF Advisers, Inc. is the advisory firm to best serve YOU.