IRS Releases 401(k) and Pension Plan Limitations for 2023

​The Internal Revenue Service (IRS) has announced cost-of-living adjustments affecting dollar limitations for 401(k), pension plans and other retirement-related items for tax year 2023 in Notice 2022-55.

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 in 2023, up from $20,500 in 2022.

The limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) is increased from $245,000 to $265,000.

The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2023 from $61,000 to $66,000.