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IRS Announces New 2023 Qualified Retirement Plan Limits

The IRS recently announced cost-of-living adjustments for 2023. Below is a list of some of the key annual limits that will apply to qualified retirement plans in 2023: 

  • Compensation limit used in calculating a participant’s benefit accruals: increased to $330,000.
  • Elective deferrals to Code Section 401(k) and 403(b) plans: increased to $22,500.
  • Annual additions to a defined contribution plan: increased to $66,000.
  • Catch-up contributions for employees aged 50 and over to Code Section 401(k) and 403(b) plans: increased to $7,500.
  • Annual benefit limit for a defined benefit plan: increased to $265,000.
  • Compensation dollar limit for defining a “key employee” in a top heavy plan: increased to $215,000.
  • Compensation dollar limit for defining a “highly compensated employee:” increased to $150,000. 

The full list of 2023 plan limits included in Notice 2022-55 is available here

The lawyers of our Employee Benefits and Executive Compensation Practice Group are readily able to assist companies on a nationwide basis with implementing sophisticated benefit plans and providing answers to their most challenging compensation issues. Additionally, our lawyers are well aware of the daily employee benefits challenges facing companies of all sizes and are capable of helping in-house lawyers and human resources personnel with the day-to-day advice and guidance necessary to properly administer employee benefits plans.

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