Aon Washington Report Special Edition
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October 26, 2022
Aon Washington Report Special Edition
IRS Releases 2023 Official Indexed Figures for Retirement Plans and Other Employee Benefit Plans; 401(k) Contribution Limit Increases to $22,500 for 2023
The Internal Revenue Service (IRS) issued Information Release 2022-188 on October 21, 2022, providing the 2023 official indexed figures for retirement plans and other employee benefit plans. The IRS issued technical guidance detailing these items in Notice 2022-55. Following are the official limits of most interest to large and medium employers, as well as the official 2023 key employee pay thresholds for top-heavy plans.
- Section 402(g) annual dollar limit for pre-tax contributions to Section 401(k), 403(b), and 457 plans: $22,500 (up from 2022 limit of $20,500)
- Section 414(v) annual dollar limit on catch-up contributions for age 50 and over: $7,500 (up from 2022 limit of $6,500)
- Section 414(q) pay threshold for highly compensated employees: $150,000 (up from 2022 limit of $135,000)
- Section 415 limit for defined benefit plans: $265,000 (up from 2022 limit of $245,000)
- Section 415 limit for defined contribution plans: $66,000 (up from 2022 limit of $61,000)
- Section 401(a)(17) recognizable pay limit: $330,000 (up from 2022 limit of $305,000)
- Section 416 pay threshold for key employees in a top-heavy plan: $215,000 (up from 2022 limit of $200,000)
IRS Information Release 2022-188 is available here.
IRS Notice 2022-55 is available here.
For more information, see the Aon bulletin entitled IRS 2023 Official Indexed Figures for Retirement Plans and Other Employee Benefit Plans, available here.