Contribution Limits

Advisors: A downloadable version of our Annual Plan Limits is available here.

2023 Annual Plan Limits

2023

2022

2021

Contribution and Benefit Limits
Defined Contribution Plans $66,000 $61,000 $58,000
Defined Benefit/Cash Balance Plan - Annuity Limit $265,000 $245,000 $230,000
Cash Balance Maximum Lump Sum $3,400,000 $3,150,000 $3,000,000
401(k), 403(b) and 457 Plan Elective Deferrals $22,500 $20,500 $19,500
SIMPLE Plan Elective Deferrals $15,500 $14,000 $13,500
IRA (Traditional and Roth) $6,500 $6,000 $6,000
Qualified Longevity Annuity Contract (QLAC) $155,000 $145,000 $135,000
ESOP amount to determine lengthening of the 5-year Distribution Rule $265,000 $245,000 $230,000
ESOP Maximum Balance subject to the 5-year Distribution Rule $1,330,000 $1,230,000 $1,165,000
Catch-Up Contributions
401(k), 403(b) and 457 Plans $7,500 $6,500 $6,500
SIMPLE Plans $3,500 $3,000 $3,000
IRA $1,000 $1,000 $1,000
Other
Maximum Considered Compensation $330,000 $305,000 $290,000
Social Security Taxable Wage Base $160,200 $147,000 $142,800
Definition of Highly Compensated Employee $150,000 $135,000 $130,000
Definition of Key Employee $215,000 $200,000 $185,000
SEP Minimum Compensation $750 $650 $650
Defined Benefit Plan Single Employer Flat PBGC Rate Premium $96 $88 $86
Defined Benefit Plan Single Employer Variable Rate Premiums/$1,000 UVB $52 $48 $46

 

Additional Information:

• The term “annual additions” generally means the sum for any year of employer contributions, employee contributions, and forfeitures.
• For plans that include salary deferral features, individuals who are age 50 and older by the end of the calendar year may make catch-up contributions in addition to the annual addition limit, if catch-up contributions are permitted under the plan.

Notes for off-calendar plan years:

• Deferral limits are on a calendar year basis, regardless of plan year.
• Use the taxable wage base (TWB) in effect at the beginning of the plan year.
• Use the annual compensation limit in effect at the beginning of the plan year.
• Use the annual additions limit in effect at the end of the plan year.