by Matt Gerard
on October 31, 2022
On October 21, 2022, the IRS issued Revenue Notice 2022-55 which provides the 2023 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of retirement plans, the most applicable adjustments announced in Revenue Procedure 2022-55 are listed in the following table:
| 401(k) Plan Limits and Thresholds | |||
| Maximum Elective Deferral Dollar Limit | 2023 (new) | 2022 (old) | |
| 401(k) Plan* | $22,500 | $20,500 | |
| SIMPLE 401(k) Plan | $15,500 | $14,000 | |
| Maximum Catch-Up Contribution Dollar Limit | 2023 (new) | 2022 (old) | |
| 401(k) Plan* | $7,500* | $6,500 | |
| SIMPLE 401(k) Plan
|
$3,500*
|
$3,000
|
|
| *The elective deferral limit also applies to 403(b) contracts, 457 plans, and SARSEPs under IRC §§402(g), 457(e), and 414(v). | |||
| Annual Additions | 2023 (new) | 2022 (old) | |
| Annual Addition Dollar Limit on Contributions | $66,000 | $61,000 | |
| Compensation | 2023 (new) | 2022 (old) | |
| Annual Dollar Limit on Includible Compensation | $330,000 | $305,000 | |
| HCEs and Key Employees | 2023 (new) | 2022 (old) | |
| Highly Compensated Employee Dollar Threshold | $150,000 | $135,000 | |
| Key Employees Dollar Thresholds | |||
| Officer Group | $215,000 | $200,000 | |
| More-Than-1% Owner | $150,000 | $150,000 | |
Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.
