Tuesday, October 25, 2022

Pension & Welfare Plan Limits Cost-Of-Living Adjustments For 2023

 

PENSION & WELFARE PLAN LIMITS
COST-OF-LIVING ADJUSTMENTS FOR 
2023

Charles C. Shulman, Esq.  
Teaneck, NJ
 201-357-0577 212-380-3834
cshulman@ebeclaw.com

 

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)).
For married joint filers –
For single filers –

 

$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)).
For married joint filers –
For single filers –

$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
($6,204.55 a month)

$81,000
($6,750 a month)

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  
With a Per Participant Cap for variable-rate premium of –

$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
(i) Self-only (ii) Family
IRC § 223(c)

$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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