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ARTICLE · 25 OCTOBER 2022

IRS Announces 2023 Employee Benefit Plan Limits

The Internal Revenue Service (IRS) and the Social Security Administration announced the cost-of-living adjustments to the applicable dollar limits on various employer-sponsored retirement and welfare plans...

United StatesEmployment and HR

The Internal Revenue Service (IRS) and the Social Security Administration announced the cost-of-living adjustments to the applicable dollar limits on various employer-sponsored retirement and welfare plans and the Social Security wage base for 2023. The table below compares the applicable dollar limits for certain employee benefit programs and the Social Security wage base for 2022 and 2023.*

RETIREMENT PLAN LIMITS (guidance link) 2022 Δ 2023
Annual compensation limit $305,000 ↑ $330,000
401(k), 403(b) & 457(b) before-tax contributions $20,500 ↑ $22,500
Catch-up contributions (if age 50 or older) $6,500 ↑ $7,500
Highly compensated employee threshold

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