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ARTICLE · 02 NOVEMBER 2022

2023 Dollar Limits On Compensation And Benefits

Venable LLP
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The Internal Revenue Service (IRS) has announced 2023 dollar limits on benefits, contributions, and compensation. The Internal Revenue Code (Code) affords tax benefits for employers that sponsor...

United StatesEmployment and HR
Harry Atlas
Harry Atlas
Juliana Reno
Juliana Reno
Lisa Tavares
Lisa Tavares
John Wilhelm
John Wilhelm
Carol V. Calhoun
Carol V. Calhoun
Ryann M. Aaron
Ryann M. Aaron
Trevor N. Kline
Trevor N. Kline

The Internal Revenue Service (IRS) has announced 2023 dollar limits on benefits, contributions, and compensation. The Internal Revenue Code (Code) affords tax benefits for employers that sponsor qualified plans and for employees who participate in such plans. In exchange for these tax benefits, the Code places limits on the contribution and benefit amounts. The IRS makes annual cost-of-living adjustments to these limits.

The rate of inflation was higher than usual in 2022, so many limit increases are greater than the usual yearly increase.

The key limits for 2023 (and the limits that applied in 2022) are listed in the table below:

Code Section

Limit

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