2023 Plan Limits

The IRS has released the 2023 Plan Limits. Below are a few highlights of the changes. See https://www.irs.gov/pub/irs-drop/n-22-55.pdf for the full release.

• The annual benefit limit under a defined benefit plan under § 415(b)(1)(A) is increased from $245,000 to $265,000.
• The limitation for defined contribution plans under § 415(c)(1)(A) is increased in 2023 from $61,000 to $66,000.
• The contribution limit for an employee who participate in their employer’s 401(k) has increased from $20,500 to $22,500 for 2023, and the catch-up limit for employees age 50 and over increased from $6,500 to $7,500 for 2023.