The IRS announced the updated retirement plan limits for 2023, covering rules for defined contribution (DC) plans. Below, we highlight the notable 2023 IRS DC plan limits:
- The annual contribution limit will increase 10% from $20,500 to $22,500.
- After no change last year, the age 50 annual catch-up contribution limit will increase from $6,500 to $7,500.
- The annual compensation limit will increase from $305,000 to $330,000.
- With a larger increase than in prior years, the Section 415(c) limit will increase from $61,000 to $66,000.
- The highly compensated employee threshold will increase from $135,000 to $150,000.
Visit the IRS publication to learn more.
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