2023 Benefit And Contribution Limits

The IRS recently announced that substantially all of the key retirement plan and health and welfare plan limits will increase next year - some significantly due to higher inflation. Notice 2022-55 (Oct. 21, 2022); Rev. Proc. 2022-38 (Oct. 18, 2022); Rev. Proc. 2022-24 (April 29, 2022). The Social Security Administration and PBGC also recently announced adjustments for the Social Security wage base, PBGC premiums, etc., for next year.

While high inflation rates have wreaked havoc in many sectors, they have generated the largest dollar increase in the limits since indexing based on inflation started in 2007. Higher income participants in 401(k) and similar elective deferral plans are particularly likely to take advantage of the changes.