Annual Plan Limits
Annual Plan Limits
2020 | 2021 | 2022 | 2023 | ||
Compensation | $285,000 | $290,000 | $305,000 | $330,000 | |
Limits on benefits and contributions: | |||||
Defined contribution plans | $57,000 | $58,000 | $61,000 | $66,000 | |
Defined benefit plans | $230,000 | $230,000 | $245,000 | $265,000 | |
401(k), 403(b) and 457 plan elective deferrals | $19,500 | $19,500 | $20,500 | $22,500 | |
SIMPLE plan elective deferrals | $13,500 | $13,500 | $14,000 | $15,500 | |
IRA | $6,000 | $6,000 | $6,000 | $6,500 | |
Catch-up contributions: | |||||
401(k), 403(b) and 457 plans | $6,500 | $6,500 | $6,500 | $7,500 | |
SIMPLE plans | $3,000 | $3,000 | $3,000 | $3,500 | |
IRA | $1,000 | $1,000 | $1,000 | $1,000 | |
“Highly Compensated” definition | $130,000 | $130,000 | $135,000 | $150,000 | |
“Key Employee” definition: | |||||
Officer | $185,000 | $185,000 | $200,000 | $200,000 | |
1% owner | $150,000 | $150,000 | $150,000 | $150,000 | |
Social Security: | |||||
Taxable wage base | $137,700 | $142,800 | $147,000 | $160,200 | |
Social Security tax rate | 6.20% | 6.20% | 6.20% | 6.20% | |
Medicare tax rate* | 1.45% | 1.45% | 1.45% | 1.45% | |
Combined tax rate | 7.65% | 7.65% | 7.65% | 7.65% |
* Beginning 2013, a medicare surtax of 0.9% applies to wages exceeding 250,000. There is a secondary surtax of 3.8% that may apply to unearned income for certain taxpayers as well.
Source: https://www.irs.gov/newsroom/401k-limit-increases-to-22500-for-2023-ira-limit-rises-to-6500