RETIREMENT PLAN NUMBERS

2022

2023

Sec. 415 Limit for Defined-Benefit Plans Sec. 415(b)(1)(A)

Maximum yearly benefit allowed is the lesser of 100% of the highest 3 years’ compensation or the indicated figure. Reductions apply for plans with pre-62 retirement ages and for participants with fewer than 10 years of service.

*This amount will be indexed in $5,000 increments when applicable.

$245,000

$265,000*

Sec. 415 Limit for Defined-Contribution Plans Sec. 415(c)(1)(A)

Maximum annual addition is the lesser of these numbers.

*This amount will be indexed in $1,000 increments when applicable.

$61,000/100

percent of salary

$66,000*/100

percent of salary

Annual Limit on Includible Compensation Sec. 401(a)(17)

Maximum compensation that can be taken into account when determining an individual’s contribution or benefit.

*This amount will be indexed in $5,000 increments when applicable.

$305,000

$330,000*

Highly Compensated Employee Sec. 414(q)(1)(B)

A person who earns over the indicated limits in the prior year and who is

in the top 20% of employees (if elected) is a highly compensated employee. In addition, a person who was a 5% owner at any time during the year or preceding year is a

highly compensated employee.

*This amount will be indexed in $5,000 increments when applicable.

$135,000

$150,000*

Key Employee Sec. 416(i)(1)(A)(i)

An employee is considered a key employee if, during the prior year, the employee was

(1) an officer with compensation in excess of the listed figure, (2) a 5% owner, or

(3) a 1% owner with compensation in excess of $150,000 (not indexed). The law limits the number of officers treated as key employees. The family ownership attribution rule applies in determining whether an individual is a 5% owner of the employer for purposes of the top-heavy rules.

*This amount will be indexed in $5,000 increments when applicable.

$200,000

$215,000*

Elective Deferrals for a 401(k) Plan or SARSEP Sec. 402(g)

The indicated figure is the maximum salary reduction that a participant can make under Sec. 402(g)(1).

*Inflation adjustments may be made in $500 increments when applicable.

$20,500

$22,500*

401(k) Catch-up Provision Sec. 414(v)(2)(B)(i)

Individuals aged 50 and older by the end of the year would be allowed to make annual catch-up contributions to a 401(k) plan. The catch up for 2023 is a $7,500 increase over the traditional 401(k) amounts. The list represents the total amount of salary deferral possible for this cohort.

*Inflation adjustments may be made in $500 increments when applicable.

$27,000

$30,000*

Elective Deferrals for a 403(b) Plan Sec. 403(b) and Sec. 402(g)(1)

The indicated figure is the maximum salary reduction that a participant can make under a 403(b) plan.

*Inflation adjustments may be made in $500 increments when applicable.

$20,500

$22,500*

403(b) Supplemental Catch-up Provision Sec. 414(v)(2)(B)(i)

In 2023, in addition to the catch-up provisions available for 403(b) plans, an individual aged 50 or older by the end of the year would be allowed to

make an annual supplemental catch-up contribution of $7,500 to the 403(b) plan. The list represents the total amount of salary deferral possible for this cohort.

*Inflation adjustments may be made in $500 increments when applicable.

$27,000

$30,000*

Elective Deferrals for a SIMPLE Sec. 408(p)(2)(E)

The figure is the maximum salary reduction that a participant can make under a SIMPLE IRA or 401(k) SIMPLE.

*Inflation adjustments may be made in $500 increments when applicable.

$14,000

$15,500*

SIMPLE Catch-up Provision Sec. 414(v)(2)(B)(ii)

Individuals aged 50 and older by the end of the year would be allowed to make annual catch-up contributions to a SIMPLE plan. The catch up for 2022 is a $3,500 increase over the traditional SIMPLE amounts. The list represents the total amount of salary deferral possible for this cohort.

*Inflation adjustments may be made in $500 increments when applicable.

$17,000

$19,000*

Part-Time Employee Limitation for a SEP Sec. 408(k)(2)(C)

Employees who earn over the indicated limits must be included in a SEP if they are otherwise eligible.

*Inflation adjustments may be made in $50 increments when applicable.

$650

$750*

457 Limitation Sec. 457(e)(15)

Nonqualified plan for state and local government and tax-exempt organizations.

*Inflation adjustments will be made in $500 increments when applicable.

Note that government-sponsored 457 plans can allow a catch-up contribution of

$7,500 for those who are aged 50 or older in 2023. In addition, a 457 plan can specifically provide that in the 3 years prior to the plan’s normal retirement age a special limit applies. The special limit is the lesser of twice the annual limit or the basic limit plus the amount of the basic limit not used in prior years.

$20,500

$22,500*

QLAC Limitation Sec. 1.401(a)(9)-6

The dollar limitations on premiums paid for a qualified longevity annuity contract.

*This amount will be indexed in $5,000 increments when applicable.

$145,000

$155,000*

Deductible, Nondeductible, and Roth IRA Contribution Limits Secs. 219(b) and 408(a)(1)

These are the limitations on how much can be contributed to an IRA.

*Indexed for inflation in $500 increments when applicable.

$6,000

$6,500*

IRA Catch-up Provision for Individuals 50 or Older by Year End Sec. 219(a)(5)(B)

The amount that can be contributed for those 50 or older by year end.

The catch up is $1,000 in 2008 and subsequent years. *The listed number is the

total amount that can be contributed for this cohort. The catch-up limit of

$1,000 will not be adjusted for cost-of-living increases under current law.

$7,000

$7,500*

Traditional IRA Phaseout Modified Adjusted Gross Income Limitations Sec. 219(g)

Joint return floor Joint return ceiling Single/HOH floor Single/HOH ceiling

Spouse (nonworking) coverage-only floor Spouse (nonworking) coverage-only ceiling

*Indexed for inflation when applicable.

$109,000

$129,000

$68,000

$78,000

$204,000

$214,000

$116,000*

$136,000*

$73,000*

$83,000*

$218,000*

$228,000*

Roth IRA Modified Adjusted Gross Income Limits Sec. 408A(c)(3)

Joint return floor Joint return ceiling Single/HOH floor Single/HOH ceiling Roth conversion limit

*Indexed for inflation when applicable.

$204,000

$214,000

$129,000

$144,000

No Limit

$218,000*

$228,000*

$138,000*

$153,000*

No Limit

PBGC Maximum Monthly Guaranteed Benefit (Age 65/Life Annuity)

$6,204.55

$6,750

PBGC Flat Premium Rate

$88

$96

Credit Percentage

MFJ

Single

Head of Household

50%

0 - $43,500

0 - $21,750

0 - $32,625

20%

$43,500.01 - $47,500

$21,750.01 - $23,750

$32,625.01 - $35,625

10%

$47,500.01 - $73,000

$23,750.01 - $36,500

$35,625.01 - $54,750

SOCIAL SECURITY NUMBERS

2022

2023

Social Security Tax Rate (Employee—FICA)

This is the percentage at which both the individual and employer are taxed for Social Security purposes. In 2023, the Medicare tax rate will be an additional 0.9% on earned income exceeding

$200,000 for single taxpayers and $250,000 for joint-filers. This 0.9% tax applies only to the employee and not to the employer.

OASDI

Medicare

6.2%

1.45%

6.2%

1.45%

Social Security Tax Rate (Self-Employed—SECA)

This is the percentage at which a self-employed individual is taxed for Social Security purposes. An above-the-line deduction is available for 1/2 of SECA taxes.

OASDI

Medicare

12.4%

2.9%

12.4%

2.9%

Taxable Wage Base

This is the maximum amount of covered earnings on which Social Security old age, survivors, and disability insurance (OASDI) taxes are paid.

$147,000

$160,200

Medicare Wage Base

This is the maximum amount of covered earnings on which Social Security hospital insurance taxes are paid.

Unlimited

Unlimited

Social Security Reduction for Postretirement Earnings (Under Full Retirement Age)

If earnings exceed the stated limit, Social Security recipients will have $1 in Social Security benefits withheld for every $2 earned in excess of the limit.

$19,560/ Yr. ($1,630/Mo.)

$21,240/ Yr. ($1,770/Mo.)

Modified Test That Applies for the Year an Individual Reaches Full Retirement Age

Applies only to earnings for months prior to attaining full retirement age.

One dollar in benefits will be withheld for every $3 in earnings above the limit.

$51,960/ Yr. ($4,330/Mo.)

$56,520/ Yr. ($4,710/Mo.)

Beneficiaries who file individual tax returns with modified adjusted gross income:

Beneficiaries who file joint tax returns with modified adjusted gross income:

Income-related monthly adjustment amount

Total monthly premium amount

Less than or equal to $97,000

Less than or equal to $194,000

$0.00

$164.90

Greater than $97,000 and

less than or equal to $123,000

Greater than $194,000 and

less than or equal to $246,000

$65.90

$230.80

Greater than $123,000 and

less than or equal to $153,000

Greater than $246,000 and

less than or equal to $306,000

$164.80

$329.70

Greater than $153,000 and

less than or equal to $183,000

Greater than $306,000 and

less than or equal to $366,000

$263.70

$428.60

Greater than $183,000 and less than $500,000

Greater than $366,000 and less than $750,000

$362.60

$527.50

Greater than or equal to $500,000

Greater than or equal to $750,000

$395.60

$560.50

file separate tax returns from their spouses with modified adjusted gross income:

Income-related monthly adjustment amount

Total monthly premium amount

Less than or equal to $97,000

$0.00

$164.90

Greater than $97,000 and less than $403,000

$362.60

$527.50

Greater than or equal to $403,000

$395.60

$560.50