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2023 retirement plan limits
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The Internal Revenue Service has announced the following inflation-adjusted retirement plan limits for 2023. Many of these limits rose, triggered by an increase in the cost-of-living index. However, the index increase did not trigger all limits to rise, as some have higher statutory thresholds.
| 2023 Limit | 2022 Limit | 2021 Limit | 2020 Limit | |
| Annual Elective Deferrals 401(k) plans 402(g)(1) | $22,500 | $20,500 | $19,500 | $19,500 |
| Annual Age 50 Catch-Up Contributions 401(k) plans §414(v)(2)(B)(i) | $7,500 | $6,500 | $6,500 | $6,500 |
| Qualified Retirement Plans Annual compensation limit §401(a)(17)/404(l) | $330,000 | $305,000 | $290,000 | $285,000 |
| Defined Benefit Plans Annual benefit limit §415(b)(1)(A) | $265,000 | $245,000 | $230,000 | $230,000 |
| Defined Contribution Plans Annual contribution limit §415(c)(1)(A) | $66,000 | $61,000 | $58,000 | $57,000 |
| HCE Definition Compensation threshold §414(q)(1)(B) | $150,000 | $135,000 | $130,000 | $130,000 |
| Top Heavy Plan – Key Employees Officer compensation threshold §416(i)(1)(A)(i) | $215,000 | $200,000 | $185,000 | $185,000 |
| Social Security Taxable wage base (OASDI only) | $160,200 | $14,000 | $142,800 | $137,700 |
| HSA Contribution Health Savings Account | $3,850 (single) $7,750 (family) | $3,600 (single) $7,300 (family) | $3,600 (single) $7,300 (family) | $3,500 (single) $7,000 (family) |
| HSA Catch-up Contributions (age 55 or older) | $1,000 | $1,000 | $1,000 | $1,000 |
| Source: Internal Revenue Service Some information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. It is not a solicitation or an offer to buy or sell any security or instrument or to participate in any trading strategy. Any opinions expressed are subject to change without notice. Mesirow refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc. © 2023, Mesirow Financial Holdings, Inc. All rights reserved. Any opinions expressed are subject to change without notice. Past performance is not indicative of future results. Advisory Fees are described in Mesirow Financial Investment Management, Inc.’s Form ADV Part 2A. Advisory services offered through Mesirow Financial Investment Management, Inc. an SEC registered investment advisor. Securities offered by Mesirow Financial, Inc. member FINRA and SIPC. | ||||
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