IRS Announces 401(k) and Retirement Plan Limits For 2023

Bottom Line Up Front

  • The maximum 401(k) contribution in 2023 is $22,500, a $2,000 boost from 2022’s contribution limit
  • 401(k) catch-up contributions increased from $6,500 to $7,500
  • Maximum annual benefit limits for defined benefit plans will be $265,000, an increase of $20,000 from 2022. 

The IRS recently released the new qualified retirement plan limits for 2023 and they’re the most significant increases we’ve seen in a while. 

Starting next year, 401(k) employee contributions will max out at $22,500, a $2,000 boost from the current 2022 contribution limit of $20,500. Plan participants over the age of 50 years will be able to contribute an additional $7,500 next year, an increase of $1,000 from the current catch-up contribution limit. 

The tables below show key 2023 limits side-by-side with those in effect currently for 2022. Inflation is at a 40-year high, which is causing the significant increases you see below for most contribution limits in 2023. If you’re a financial advisor, these charts are a great way to start conversations with clients on plan redesign, tax-efficient combo plans, talent retention, and recruitment for the year ahead. 

What are the new 401(k) plan limits for 2023?

401(k) plan limits for 2023 compared to the past 2 years

What are the 2023 limits for non-401(k) related plans?

Non-401(k) related limits for 2023 compared to the past 2 years

Download the full whitepaper here: 401(K) Plan Limits & Non-401(k) Related Limits

Bonus: 2023 HSA and HDHP Limits

2023 IRA Contribution Limit Increase

Contributions to both traditional IRAs and Roth IRAs will increase in 2023 as well to $6,500 – that’s a $500 increase from the current limit. The catch-up contribution will remain at $1,000. 

If you’d like a closer look at these and other retirement-related limits for 2023, please refer to IRS Notice 2022-55.

Advisors, if you’re interested in a more in-depth retirement plan comparison chart or a free retirement plan review, you can reach one of our consultants here

Whenever you’re ready, here are three ways we can help: 

  1. Business owners, get a free review of your current retirement plan design here
  2. Minimize your tax burden and secure your employees’ futures here.
  3. Financial advisors, help your clients defer income while providing retirement benefits for their employees here.