2023 Contribution Limits for Retirement Plans
Highlights of Changes for 2023:
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $22,500, up from $20,500. Catch-up contributions for those 50 or older are allowed an additional $7,500, up from $6,500.
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)
Here are the phase-out ranges for 2023:
For single taxpayers covered by a workplace retirement plan, the phase-out range is $73,000 to $83,000, up from $68,000 to $78,000.
For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $116,000 to $136,000, up from $109,000 to $129,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $218,000 and $228,000, up from $204,000 and $214,000.
For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
The income phase-out range for taxpayers making contributions to a Roth IRA:
For singles and heads of household is $138,000 to $153,000, up from $129,000 to $144,000.
For married couples filing jointly is $218,000 to $228,000, up from $204,000 to $214,000.
For a married individual filing a separate return who makes contributions to a Roth IRA, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $73,000 for married couples filing jointly, up from $68,000; $54,750 for heads of household, up from $51,000; and $36,500 for singles and married individuals filing separately, up from $34,000.
Click the link to view the full IRS Notice 2022-55.
Plan Limits for Plan Year
401(k)/403(b) Elective Deferrals
Annual Defined Contribution Limit
Annual Compensation Limit
Catch-Up Contribution Limit
Highly Compensated Employees
Non-401(k) Related Limits:
457 Elective Deferrals
SIMPLE Employee Deferrals
SIMPLE Catch-Up Deferral
Social Security Wage Base
IRA Contribution Limit
IRA Catch-up Limit