PENSION & WELFARE PLAN LIMITS
COST-OF-LIVING
ADJUSTMENTS FOR 2023
2023 retirement and welfare plan limits are increased to take into account cost-of-living adjustments.
|
Pension
Plan and Related Limits |
2022 |
2023 |
|
Pre-tax
elective deferral maximum under IRC § 401(k), 403(b), and
457(b) plans (IRC
§§ 402(g)(3) & 457 (e)(15)) |
$20,500 |
$22,500 |
|
Age
50 and older “catch-up” for 401(k), 403(b), and
governmental 457(b) plans and SEPs (IRC § 414(v)(2)(B)(i)) |
$6,500 |
$7,500 |
|
Annual
compensation limit under IRC §§ 401(a)(17), 404(l)
and 408(k) |
$305,000 |
$330,000 |
|
401(a)(17) annual comp. limit - governmental plans grandfathered on
7-1-1993 |
$450,000 |
$490,000 |
|
Annual
benefit limit for defined benefit plans under IRC § 415(b) |
$245,000 |
$265,000 |
|
Annual
contribution limit for defined contribution plans
under IRC § 415(c) |
$61,000 |
$66,000 |
|
Highly
compensated employee threshold for nondiscrimination testing in
the following year under IRC § 414(q)(1)(B) |
$135,000 |
$150,000 |
|
Key
employee threshold for officers for top heavy plan under
IRC § 416(i)(1)(A)(i) |
$200,000 |
$215,000 |
|
ESOP
account balance for five and one year distributions under
IRC § 409(o)(1)(C)(ii) |
$1,230,000
/ $245,000 |
$1,330,000 /
$265,000 |
|
Limit
on premiums paid for QLACs (qualified longevity annuity
contracts) under Treas. Reg. § 1.401(a)(9)-6 (adopted 2014) |
$145,000 |
$155,000 |
|
Minimum
earnings level to qualify for SEP under IRC § 408(k) |
$650 |
$750 |
|
SIMPLE
plan elective deferral limit under IRC § 408(p)(2)(E) |
$14,000 |
$15,500 |
|
SIMPLE
401(k) or IRA age 50 catch-up (IRC § 414(v)(2)(B)(ii)) |
$3,000 |
$3,500 |
|
Basic/Roth
IRA contribution limit under IRC §§ 219(b)(5)(A) & 408A. (With age 50 $1,000 IRA
catchups that do not have cost-of-living adjustments) |
$6,000 |
$6,500 |
|
AGI (adjusted
gross income) phase-out of deduction for IRA where participant or spouse contributing to IRA
also participates in employer-sponsored retirement plan (IRC
§ 219(g)). |
$109,000 to $129,000 $68,000 to $78,000 |
$116,000 to $136,000 $73,000 to $83,000 |
|
AGI phase-out of deduction for IRA for married persons filing jointly where
participant's spouse who is contributing to IRA also participates in
employer-sponsored retirement plan (IRC § 219(g)(7)) |
$204,000
to $214,000 |
$218,000
to $228,000 |
|
AGI Phase-out deduction for contributions to Roth
IRA for married persons filing jointly (IRC
§ 408A(c)(3)(B)). |
$204,000
to $214,000 $129,000
to $144,000 |
$218,00
to $228,000 $138,000
to $153,000 |
|
Health Savings Account contribution limits (single and family) |
$3,650 and
$7,300 |
$3,850 and
$7,750 |
|
PBGC
guaranteed benefit (annual single life annuity beginning at age 65) |
$74,454.60 |
$81,000 |
|
PBGC flat-rate premium per participant for a single-employer plan |
$88 |
$96 |
|
PBGC variable-rate premium per $1,000 for single-employer plans of Unfunded Vested
Benefits – |
$48 $598 |
$52 $652 |
|
PBGC
premium for multiemployer plan per participant |
$32 |
$35 |
|
Taxable
wage base subject to FICA tax |
$147,000 |
$155,100 |
|
DOL Penalties per day -- Failure to file annual report (Form 5500) - ERISA § 502(c)(2)
(originally $1,000 a day) -- Failure to provide blackout
notices or notices of diversification rights – ERISA § 502(c)(7) (originally $100 a day) |
$24,000 $152 |
TBA TBA |
|
Health
FSA (flexible spending account) limit – IRC
§ 125(i) |
$2,850 |
$3,050 |
|
Health
FSA carryover amount |
$570 |
$610 |
|
HRA
maximum employer contribution Treas. Reg. §
54.9831-1(c)(3)(viii)(B) |
$1,800 |
$1,950 |
|
HSA
(health savings account) (i)
Individual limit (ii) Family
limit – IRC § 223(b)(2) |
$3,650 $7,300 |
$3,850 $7,750 |
|
HDHP
minimum deductibles |
$1,400 $2,800 |
$1,500 $3,000 |
|
HDHP
maximum out-of-pocket amounts for (i) self and (ii) family – IRC § 223(c) |
$7,050 $14,100 |
$7,500 $15,000 |
|
Qualified
transportation fringe benefit and parking program – IRC § 132(f)(2) |
$280 |
$300 |
|
Social
Security taxable wage base |
$147,000 |
$160,200 |
|
Social
Security tax up to SS wage base (SS and Medicare taxed both
on employer & employee or double for self-employed). |
6.2% |
6.2% |
|
Medicare
Tax no limit (Plus additional 0.9% Medicare tax for wages in
excess of $250,000 for joint filers, $200,000 for singles
after 2012) |
1.45% |
1.45% |
|
Social
Security cost of living increase |
5.9% |
8.7% |
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