IRS Plan Limitations - Social Security Cost of Living Adjustments
Section 415 of the IRS Code provides for dollar limitations on benefits and contributions associated with qualified retirement plans. It requires the Commissioner annually to adjust limits for cost of living increases to meet statutory thresholds as needed. If the statutory threshold is currently met, the limitations will remain unchanged.
Qualified Plans source IRS Notice 2022-55 |
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| Calendar Year | 2022 | 2023 | |
| Defined Contribution Plan - Dollar Limit on Annual Additions | $61,000 | $66,000 | |
| Defined Benefit Plan Limit on Annual benefits | $245,000 | $265,000 | |
| Maximum Annual Compensation Limit | $305,000 | $330,000 | |
| Traditional & Roth 401k, 403b deferrals | $20,500 | $22,500 | |
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| Additional Catch up for Employees over age 50 in | |||
| Traditional & Roth 401k & 403b | $6,500 | $7,500 | |
| SIMPLE IRA deferrals | $14,000 | $15,500 | |
| Additional Catch up for Employees over age 50 in SIMPLE | $3,000 | $3,500 | |
| Compensation Defining - Highly Compensated Employee | $135,000 | $150,000 | |
| Compensation Defining - Key Employee-Officer | $200,000 | $215,000 | |
| Annual Compensation triggering SEP contribution requirement | $650 | $750 | |
| Annual Compensation for SIMPLE IRA eligibility (IRS Pub. 560) | $5,000 | $5,000 | |
| IRA - Contributions Source IRS Pub. 590-A | |||
| Traditional & Roth - lesser of 100% of earned income or | $6,000 | $6,500 | |
| Traditional & Roth - Annual catch up for earners over age 50 | $1,000 | $1,000 | |
| Maximum Income for full Roth Contribution - Single | $129,000 | $138,000 | |
| Maximum Income for full Roth Contribution - Married - jointly | $204,000 | $218,000 | |
Traditional IRA Maximum Income for Deduction IRS Pub.590-A |
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| Single - No Employer Retirement Plan | unlimited | unlimited | |
| Single covered by Employer plan full Deduction if AGI under | $68,000 | $73,000 | |
| Single covered by Employer's plan non-deductible if AGI over | $78,000 | $83,000 | |
| Married Not in Employer Retirement Plan - both spouses | unlimited | unlimited | |
| Married both covered by Employer Plan - Full deduct AGI under | $109,000 | $116,000 | |
| Married both covered in Employer Plan - non-deduct AGI over | $129,000 | $136,000 | |
| Married 1 Spouse Covered in Employer plan - full deduct AGI under | $204,000 | $218,000 | |
| Married 1 Spouse Covered in Employer plan - no deduct AGI over | $214,000 | $228,000 | |
| Social Security Taxable Wage Base | $147,000 | $160,200 | |
Medicare Taxable Wage Base-Source Medicare.gov |
unlimited | unlimited | |
| Medicare Part B Monthly Premium - No IRMAA Adjustment | $170.10 | $164.90 | |
| Medicare Part B Monthly Premium - No IRMAA Adjustment | $170.10 | $164.90 | |
Maximum Part B Monthly Premium - see Medicare.gov for details |
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| Health Savings Accounts Source-RevProc.2022-38 | |||
| Minimum Qualifying H.S.A deductible - Single | $1,400 | $1,500 | |
| Minimum Qualifying H.S.A deductible - Family | $2,800 | $3,000 | |
| Maximum H.S.A. contribution - Single | $3,600 | $3,850 | |
| Maximum H.S.A. contribution - Family | $7,200 | $7,750 | |
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H.S.A Catch Up Contribution Over Age 55
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$1,000 | $1,000 | |
F.S.A.Maximum Contribution $2,850 $3,050
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Small Business Insurance Agency nor any of its representatives may give legal or tax advice.