The Internal Revenue Service (IRS) has released its annual cost-of-living adjustments applicable to employee benefit plans for 2023. A year-to-year comparison of limitations can be found here: 2023 Annual Limitations Chart
These contribution limits are generally adjusted for inflation and, consistent with prior years, the IRS has increased the limits based on a cost-of-living index. For 2023, the adjustments to qualified retirement plan limitations include an increase in the contribution limit (section 415 limitation) for defined contribution plans from $61,000 to $66,000, and an increase to the annual compensation limit for purposes of Internal Revenue Code Section 401(a)(17) from $305,000 to $330,000 (from $450,000 to $490,000 for certain governmental plans).
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