Uniglobal can help you and your organization prepare for what's next.
The IRS released the cost of living adjustments (COLA) for various retirement plan limitations that will take effect on January 1, 2023. Full COLA limits are charted by the IRS in their Cost-of-Living Adjustments for Retirement Items.
2023 welcomes several significant increases. On average, the limits that have increased, which are all but one, we see a 10% increase from the year prior.
What's Not Increased?
increased for 2023 is the 219(b)(5)(B) IRA Catch-Up Contributions. The limit remains at $1,000.
2023 IRS Select COLA Limits Summary Chart
|Plan Section Limit||2022||2023|
|Maximum Defined Contribution Annual Additions||$61,000||$66,000|
|Salary Deferral 401(k)/403(b) Limit||$20,500||$22,500|
|Maximum Compensation for Retirement Plan Purposes||$305,000||$330,000|
|HCE Compensation Limit||$135,000||$150,000|
|Key Employee Officer||$200,000||$215,000|
|Social Security Taxable Wage Base||$147,000||$160,200|
Learn more about these increases and how they impact your retirement plan by contacting Uniglobal and your Uniglobal consultant.
Additional information on limit changes for 2023 can be found in the IRS Retirement Topics page. The IRS page 401(k) limit increases to $22,500 expands on the highlights in this post. The IRS also provides a tool if you’d like to get a Retirement Savings Check-Up.