Maximum Benefits and Contributions Limits for 2018 to 2023 (Posted on November 7, 2022 by )

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Author(s): Carol V. Calhoun
Published on November 7, 2022


Carol V. Calhoun, Counsel
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Phone: (202) 344-4715
Fax: (202) 344-8300
Mobile: (202) 441-5592
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Carol V. Calhoun

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Type of Limitation 2023 2022 2021 2020 2019 2018
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $22,500 $20,500 $19,500 $19,500 $19,000 $18,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $22,500 $20,500 $19,500 $19,500 $19,000 $18,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans $7,500 $6,500 $6,500 $6,500 $6,000 $6,000
Defined Benefit Plans $265,000 $245,000 $230,000 $230,000 $225,000 $220,000
Defined Contribution Plans (annual additions limit) $66,000 $61,000 $58,000 $57,000 $56,000 $55,000
Annual Compensation Limit $330,000 $305,000 $290,000 $285,000 $280,000 $275,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $490,000 $450,000 $430,000 $425,000 $415,000 $405,000
Highly Compensated Employee (“HCEs”) $150,000 $135,000 $130,000 $130,000 $125,000 $120,000
Key Employee/Officer $215,000 $200,000 $185,000 $185,000 $180,000 $175,000
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $6,500 $6,000 $6,000 $6,000 $6,000 $5,500
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $7,500 $7,000 $7,000 $7,000 $7,000 $6,500
SIMPLE Retirement Accounts $15,500 $14,000 $13,500 $13,500 $13,000 $12,500
SEP Coverage $750 $650 $650 $600 $600 $600
SEP Compensation $330,000 $305,000 $290,000 $285,000 $280,000 $275,000
Tax Credit ESOP Maximum Balance $1,330,000 $1,230,000 $1,165,000 $1,150,000 $1,130,000 $1,105,000
Amount for Lengthening of 5-Year ESOP Period $265,000 $245,000 $230,000 $230,000 $225,000 $220,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases $155,000 $145,000 $135,000 $135,000 $130,000 $130,000
Income Subject to Social Security Tax $160,200 $147,000 $142,800 $137,700 $132,900 $128,400
FICA Tax for employers 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
FICA Tax for employees 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employers 6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
Social Security Tax for employees 6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
Medicare Tax for employees and employers 1.45% 1.45% 1.45% 1.45% 1.45% 1.45%
SECA Tax for self-employed workers 15.3% 15.3% 15.3% 15.3% 15.3% 15.3%
Social Security Tax for self-employed workers 12.4% 12.4% 12.4% 12.4% 12.4% 12.4%
Medicare Tax for self-employed workers 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%
Footnotes:
1. 2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).
2. 2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).
3. 2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).
4. 2020 limits reflect issuance of IRS Notice 2019-59, 2019-47 I.R.B. 1091 (November 18, 2019) and the corresponding Social Security Administration News Release (October 10, 2019).
5. 2019 limits reflect issuance of IRS Notice 2018-83, 2018-47 I.R.B. 774 (November 19, 2018) and the corresponding Social Security Administration News Release (October 11, 2018).
6. 2018 limits reflect issuance of IRS Notice 2017-64, 2017-45 I.R.B. 486 (November 6, 2017) and the corresponding Social Security Administration News Release (October 13, 2017), as modified by Updated 2018 Taxable Maximum Amount Announced (November 27, 2017).
7. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
8. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).
2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).
2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).
2020 limits reflect issuance of IRS Notice 2019-59, 2019-47 I.R.B. 1091 (November 18, 2019) and the corresponding Social Security Administration News Release (October 10, 2019).
2019 limits reflect issuance of IRS Notice 2018-83, 2018-47 I.R.B. 774 (November 19, 2018) and the corresponding Social Security Administration News Release (October 11, 2018).
2018 limits reflect issuance of IRS Notice 2017-64, 2017-45 I.R.B. 486 (November 6, 2017) and the corresponding Social Security Administration News Release (October 13, 2017), as modified by Updated 2018 Taxable Maximum Amount Announced (November 27, 2017).
This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.