It’s All About the Benjamins…2023 IRS Limits Announced
by Lyn Domenick
The IRS has announced the 2023 cost of living adjustments to qualified plan limits. As expected, many of the limits increased substantially compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.
| 2023 | 2022 | 2021 | |
| Annual Compensation | 330,000 | 305,000 | 290,000 |
| Elective Deferrals | 22,500 | 20,500 | 19,500 |
| Catch-up Contributions | 7,500 | 6,500 | 6,500 |
| Defined Contribution Limit | 66,000 | 61,000 | 58,000 |
| ESOP Distribution Limits | 1,330,000 265,000 |
1,230,000 245,000 |
1,165,000 230,000 |
| Defined Benefit Limit | 265,000 | 245,000 | 230,000 |
| HCE Threshold | 150,000 | 135,000 | 130,000 |
| Key Employee | 215,000 | 200,000 | 185,000 |
| 457 Elective Deferrals | 22,500 | 20,500 | 19,500 |
| Taxable Wage Base | 160,200 | 147,000 | 142,800 |