The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
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2023 |
2022 |
2021 |
|
|
IRAs |
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| IRA Contribution Limit |
$6,500 |
$6,000 |
$6,000 |
| IRA Catch-Up Contributions |
$1,000 |
$1,000 |
$1,000 |
|
IRA AGI Deduction Phase-out Starting |
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| Joint Return |
$116,000 |
$109,000 |
$105,000 |
| Single or Head of Household |
$73,000 |
$68,000 |
$66,000 |
|
SEP |
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| SEP Minimum Compensation |
$750 |
$650 |
$650 |
| SEP Maximum Contribution |
$66,000 |
$61,000 |
$58,000 |
| SEP Maximum Compensation |
$330,000 |
$305,000 |
$290,000 |
|
SIMPLE Plans |
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| SIMPLE Maximum Contributions |
$15,500 |
$14,000 |
$13,500 |
| Catch-up Contributions |
$3,500 |
$3,000 |
$3,000 |
|
401(k), 403(b), Profit-Sharing Plans, etc. |
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| Annual Compensation |
$330,000 |
$305,000 |
$290,000 |
| Elective Deferrals |
$22,500 |
$20,500 |
$19,500 |
| Catch-up Contributions |
$7,500 |
$6,500 |
$6,500 |
| Defined Contribution Limits |
$66,000 |
$61,000 |
$58,000 |
| ESOP Limits |
$1,330,000 $265,000 |
$1,230,000
$245,000 |
$1,165,000 $230,000 |
|
Other |
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| HCE Threshold |
$150,000 |
$135,000 |
$130,000 |
| Defined Benefit Limits |
$265,000 |
$245,000 |
$230,000 |
| Key Employee |
$215,000 |
$200,000 |
$185,000 |
| 457 Elective Deferrals |
$22,500 |
$20,500 |
$19,500 |
| Control Employee (board member or officer) |
$130,000 |
$120,000 |
$115,000 |
| Control Employee (compensation-based) |
$265,000 |
$245,000 |
$235,000 |
| Taxable Wage Base |
$160,200 |
$147,000 |
$142,800 |