Retirement Cost-of-Living Adjustments
Maximum Dollar Limitations
Employee Deferral Limits |
2023 |
2022 | 2021 | 2020 |
2019 |
401(k) Contribution | $22,500 | 20,500 | 19,500 | 19,500 | 19,000 |
403(b) Contribution | $22,500 |
20,500 |
19,500 |
19,500 | 19,000 |
457 Contribution |
$22,500 |
20,500 | 19,500 | 19,500 | 19,000 |
SIMPLE 401(k)/IRA |
$15,500 | 14,000 | 13,500 | 13,500 | 13,000 |
Employee Catch-Up Limits | |||||
401(k), 403(b), 457 |
$7,500 | 6,500 | 6,500 | 6,500 | 6,000 |
SIMPLE 401(k)/IRA |
$3,500 | 3,000 | 3,000 | 3,000 | 3,000 |
Other Plan Limitations | |||||
Compensation Cap |
$330,000 |
305,000 |
290,000 |
285,000 | 280,000 |
Defined Benefit Plan Maximum Benefit |
$265,000 |
245,000 |
230,000 |
230,000 |
225,000 |
Defined Contribution Plan Maximum Contribution | $66,000 |
61,000 |
58,000 |
57,000 |
56,000 |
Highly Compensated Employees’ Compensation Exceeding | $150,000 |
135,000 |
130,000 | 130,000 |
125,000 |
Key Employee Officer Compensation |
$215,000 |
200,000 | 185,000 | 185,000 |
180,000 |
Key Employee 1% Owner |
$150,000 |
150,000 | 150,000 | 150,000 |
150,000 |
SEP Participation Coverage Compensation Level |
$750 |
650 | 650 | 600 |
600 |
ESOP Threshold for 5-Year Distribution Period |
$1,130,000 |
1,230,000 |
1,165,000 | 1,150,000 |
1,130,000 |
ESOP Incremental Threshold for Extending 5-Year Distribution Period (max 5 additional years) |
$265,000 | 245,000 | 230,000 | 230,000 |
225,000 |
Social Security Taxable Wage Bases | |||||
– Social Security | $160,200 |
147,000 |
142,800 | 137,700 | 132,900 |
– Medicare |
No Limit |
No Limit | No Limit | No Limit |
No Limit |
Social Security Tax Rates | By Percentage | ||||
– Social Security – Employer |
6.20 |
6.20 | 6.20 | 6.20 |
6.20 |
– Social Security – Employee |
6.20 |
6.20 | 6.20 | 6.20 |
6.20 |
– Medicare – Employer and Employee |
1.45 |
1.45 | 1.45 | 1.45 |
1.45 |
– Per Employer/Per Employee Combined Rate |
7.65 |
7.65 | 7.65 | 7.65 |
7.65 |
Combined Rate |
15.30 |
15.30 | 15.30 | 15.30 |
15.30 |
Additional Medicare Tax on Wages above $200,000 – Employee Only |
.9* |
.9* | .9* | .9* |
.9* |
*The Affordable Care Act imposes an additional .9% Medicare tax on wages above $200,000 ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for other filers). Employers are required to withhold the additional .9% Medicare tax (a total of 2.35%) on wages above $200,000 regardless of the employee’s tax filing status. Employers do not match this additional tax.