2023 and 2022 contribution rates for employer and individual retirement accounts, including income phase-outs for IRA deductions and ROTH IRA contributions.
Employee/individual contribution limits
| Elective deferral limits |
2022 |
2023 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions] |
Lesser of $20,500 or 100% of participant’s compensation |
Lesser of $22,500 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans1 |
Lesser of $14,000 or 100% of participant’s compensation |
Lesser of $15,500 or 100% of participant’s compensation |
1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).
| IRA contribution limits |
2022 |
2023 |
| Traditional IRAs |
Lesser of $6,000 or 100% of earned income |
Lesser of $6,500 or 100% of earned income |
| Roth IRAs |
Lesser of $6,000 or 100% of earned income |
Lesser of $6,500 or 100% of earned income |
| Additional “catch-up” limits (individuals age 50 or older) |
2022 |
2023 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2 |
$6,500 |
$7,500 |
| SIMPLE 401(k) plans and SIMPLE IRA plans |
$3,000 |
$3,500 |
| IRAs (traditional and Roth) |
$1,000 |
$1,000 |
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Employer contribution/benefit 3 limits
| Defined benefit plan limits |
2022 |
2023 |
| Annual contribution limit per participant |
No predetermined limit. Contributions based on amount needed to fund promised benefits |
No predetermined limit. Contributions based on amount needed to fund promised benefits. |
| Annual benefit limit per participant |
Lesser of $245,000 or 100% of average compensation for highest three consecutive years |
Lesser of $265,000 or 100% of average compensation for highest three consecutive years |
| Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] |
2022 |
2023 |
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) |
Lesser of $61,000 or 100% (25% for SEP) of participant’s compensation |
Lesser of $66,000 or 100% (25% for SEP) of participant’s compensation |
| Maximum tax-deductible employer contribution [not applicable to 403(b) plans] |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.
Compensation limits/thresholds
| Retirement plan compensation limits |
2022 |
2023 |
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) |
$305,000 |
$330,000 |
| Compensation threshold used to determine a highly compensated employee |
$135,000 (when 2022 is the look-back year) |
$150,000 (when 2023 is the look-back year) |
| Compensation threshold used to determine a key employee in a top-heavy plan |
$1 for more-than-5% owners, $200,000 for officers, $150,000 for more-than-1% owners |
$1 for more-than-5% owners, $215,000 for officers, $150,000 for more-than-1% owners |
| Compensation threshold used to determine a qualifying employee under a SIMPLE plan |
$5,000 |
$5,000 |
| Compensation threshold used to determine a qualifying employee under a SEP plan |
$650 |
$750 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as: |
2022 |
2023 |
| Single |
$68,000 – $78,000 |
$73,000 – $83,000 |
| Married filing jointly |
$109,000 – $129,000 |
$116,000 – $136,000 |
| Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a: |
2022 |
2023 |
| Joint return with a spouse who is covered by an employer-sponsored retirement plan |
$204,000 – $214,000 |
$218,000 – $228,000 |
| Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as: |
2022 |
2023 |
| Single |
$129,000 – $144,000 |
$138,000 – $153,000 |
| Married filing jointly |
$204,000 – $214,000 |
$218,000 – $228,000 |
| Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
|
