2023 Qualified Plan Cost of Living Increases, 2023 Social Security Taxable Wage Base

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October 21, 2022

On October 21, 2022 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits.  All of the limits shown below have increased (in some cases significantly) from last year.

 
Qualified Plan Limit Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit 2022 – $20,500

2023 – $22,500

$200,000 compensation limit 2022 – $305,000

2023 – $330,000

$160,000 defined benefit limit 2022 – $245,000

2023 – $265,000

$40,000 defined contribution limit 2022 – $61,000

2023 – $66,000

$80,000 definition of highly compensated employee 2022 – $135,000

2023 – $150,000

SIMPLE IRA deferral limit 2022 – $14,000

2023 – $15,500

Code Section 457 deferred compensation plan deferral limit 2022 – $20,500

2023 – $22,500

Code Section 414(v) catch-up contribution limit for employee deferrals 2022 – $6,500

2023 – $7,500

All of the above are plan year limits (i.e., for the plan year which begins in 2023), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $160,200 for 2023, which is an increase from the 2022 limit of $147,000.

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