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IRS Announces 2023 Cost-of-Living Adjustments for 401(k) Plan Limits and Thresholds

On October 21, 2022, the IRS issued Revenue Notice 2022-55 which provides the 2023 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of retirement plans, the most applicable adjustments announced in Revenue Procedure 2022-55 are listed in the following table:

401(k) Plan Limits and Thresholds
Maximum Elective Deferral Dollar Limit 2023 (new) 2022 (old)
401(k) Plan* $22,500 $20,500
SIMPLE 401(k) Plan $15,500 $14,000
Maximum Catch-Up Contribution Dollar Limit 2023 (new) 2022 (old)
401(k) Plan* $7,500* $6,500
SIMPLE 401(k) Plan






*The elective deferral limit also applies to 403(b) contracts, 457 plans, and SARSEPs under IRC §§402(g), 457(e), and 414(v).
Annual Additions 2023 (new) 2022 (old)
Annual Addition Dollar Limit on Contributions $66,000 $61,000
Compensation 2023 (new) 2022 (old)
Annual Dollar Limit on Includible Compensation $330,000 $305,000
HCEs and Key Employees 2023 (new) 2022 (old)
Highly Compensated Employee Dollar Threshold $150,000 $135,000
Key Employees Dollar Thresholds
          Officer Group $215,000 $200,000
          More-Than-1% Owner $150,000 $150,000

Be sure to check for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.