Cost-of-living adjustments affecting limitations have been announced by the IRS for tax year 2023.
| 2023 | 2022 | |||
| 401(K) AND 403(B) CONTRIBUTION LIMIT | $22,500 | $20,500 | ||
| 401(K) AND 403(B) CATCH UP CONTRIBUTION LIMIT (OVER AGE 50) | $7,500 | $6,500 | ||
| DEFINED CONTRIBUTION LIMIT (415) | $66,000 | $61,000 | ||
| HIGHLY COMPENSATED EMPLOYEE DEFINITION (PRIOR YEAR) | $150,000 | $135,000 | ||
| COMPENSATION (PLAN LIMIT) | $330,000 | $305,000 | ||
| SOCIAL SECURITY TAXABLE WAGE BASE | $160,200 | $147,000 | ||
| MEDICARE TAXABLE WAGE BASE | No Limit | No Limit | ||
| HEALTH SAVINGS ACCOUNT LIMIT (INDIVIDUAL) | $3,850 | $3,650 | ||
| HEALTH SAVINGS ACCOUNT LIMIT (FAMILY) | $7,750 | $7,300 | ||
| HEALTH SAVINGS ACCOUNT CATCH UP CONTRIBUTION (INDIVIDUAL & FAMILY) (OVER AGE 55) | $1,000 | $1,000 | ||
| SIMPLE CONTRIBUTION LIMIT | $15,000 | $14,000 | ||
| SIMPLE CATCH UP CONTRIBUTION LIMIT (OVER AGE 50) | $3,500 | $3,000 | ||
| IRA CONTRIBUTION LIMIT (TRADITIONAL & ROTH) | $6,500 | $6,000 | ||
| IRA CATCH UP CONTRIBUTION LIMIT (OVER AGE 50) | $1,000 | $1,000 | ||
For more information, please contact your Somerset Advisor at 317.472.2200 or .
