Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in your plan’s document. The elective deferral and catch-up limits are always based on the calendar year.
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Compensation | $330,000 | $ 305,000 | $ 290,000 |
| Limits on Benefits and Contributions: | |||
| Defined contribution plans | $66,000 | $ 61,000 | $ 58,000 |
| Defined benefit plans | $265,000 | $ 245,000 | $ 230,000 |
| 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 | $6,500 | $ 6,000 | $ 6,000 |
| 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 |
| “Highly Compensated” Definition | $150,000 | $ 135,000 | $ 130,000 |
| “Key Employee” Definition | |||
| Officer | $215,000 | $ 200,000 | $ 185,000 |
| 1% Owner | $150,000 | $ 150,000 | $ 150,000 |
| Social Security taxable wage base | $160,200 | $ 147,000 | $ 142,800 |