2023 Retirement Plan Limits Offer Significant Savings Potential
On October 21, 2022 the IRS announced new contribution limits for tax-advantaged retirement plans.
Inflation has been a principal factor in the substantial limit increases, that will benefit plan participants who are behind on their savings and help prudent savers reach an even more comfortable retirement.
Key Limit Increases:
- 401(k) and 403(b) contribution limits increased from $20,500 to $22,500 for 2023.
- 401(k) and 403(b) catch-up contribution limits increased $1000 from $6500 to $7500 in 2023.
- The Social Security Wage Base has increased from $147,000 to $160,200 in 2023.
- The new cash balance plan lump sum increased by $250,000 to $3,400,000 in 2023, an 8% increase compared to a 5% increase from 2021 to 2022.
- The highly compensated threshold is now $150,000 from $135,000 in 2022.
Download our handy 2023 Annual Retirement Plan Limits flyer.
Reach out to CRS to discuss how your clients can take advantage of these new limits.