Starting Jan. 1, 2023, you may be able to invest more thanks to higher benefit limits for 401(k) and other qualified plans. Below are a summary of the changes:
| Limit | 2023 | 2022 |
| Dollar Limit on Elective Deferrals | $22,500 | $20,500 |
| Catch-up Contribution Limit | $7,500 | $6,500 |
| Annual Compensation Limit | $330,000 | $305,000 |
| Section 415 Annual Additions Limit | $66,000 | $61,000 |
| Highly-Compensated Employee | $150,000 | $135,000 |
| Key Employee (Officers) | $215,000 | $200,000 |
Highlights include:
- The 401(k) and 403(b) Maximum Annual Elective Deferral Limit has increased to $22,500
- The Catch-up Contribution Limit for individuals aged 50 or over has increased to $7,500
These changes provide an excellent opportunity for your company to empower your employees to take control of their financial futures. To make it easy to explain these changes with your employees, please click here for a flyer that summarizes the 2023 and 2022 limits.
For the full details on the limit changes, click here to visit the IRS website.
If you want to make some adjustments to your retirement strategy, we are here to help and welcome the opportunity. Feel free to reach out at 800.307.0376 or click here to schedule a time for us to connect.
We are happy to help, if you have any questions or would like additional insight, please feel free to reach out to me at joe@printers401k.com or 800.307.0376.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.