What Are The Retirement Plan Dollar Limits For 2023?

The Secretary of the Treasury announced the 2023 limits for qualified retirement plans and IRAs based on cost of living increases. The Consumer Price Index for all Urban Consumers is the benchmark used to determine the index. With a cost-of-living increase of 8.3 percent (the largest cost-of-living increase since 1982), most of the dollar limits are increasing for 2023 as noted in the table on page two.

IRS Notice 2022-55 sets forth the annual dollar limitations on benefits and contributions to qualified plans, effective Jan. 1, 2023, as required under Section 415(d) of the Internal Revenue Code. For 2023, the cap on employee deferrals increases to $22,500, catch-up contributions increase from $6,500 to $7,500 and the annual additions limit for 401(k), 403(b) and other defined contribution plans increases to $63,000.