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ARTICLE · 02 NOVEMBER 2022

Sizeable Increases To 2023 Plan Limits Due To Inflation

Miller, Canfield, Paddock and Stone P.L.C.
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The Internal Revenue Service recently issued its annual cost-of-living adjustments (COLAs) for the 2023 tax year for retirement plans as well as health and welfare benefit plans.

United StatesEmployment and HR

The Internal Revenue Service recently issued its annual cost-of-living adjustments (COLAs) for the 2023 tax year for retirement plans as well as health and welfare benefit plans. These COLAs reflect significant increases in the consumer price index (CPI). Plan sponsors should both alert their employees and prepare to allow such changes for the 2023 tax year.

In Notice 2022-55, the IRS set forth COLAs for many retirement plan limits, including significantly increased contribution limits. Please see the table below for retirement plan cost of living adjustments:

Retirement Plan Limits 2023 2022

Deferral Limit

$22,500 $20,500

Catch-up Contribution Limit

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