2023 Qualified Plan Cost of Living Increases, 2023 Social Security Taxable Wage Base
By Mary Ellen Schill
October 21, 2022
On October 21, 2022 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. All of the limits shown below have increased (in some cases significantly) from last year.
| Qualified Plan Limit | Cost-of-Living Adjustments |
| 401(k) and 403(b) elective deferral limit | 2022 – $20,500
2023 – $22,500 |
| $200,000 compensation limit | 2022 – $305,000
2023 – $330,000 |
| $160,000 defined benefit limit | 2022 – $245,000
2023 – $265,000 |
| $40,000 defined contribution limit | 2022 – $61,000
2023 – $66,000 |
| $80,000 definition of highly compensated employee | 2022 – $135,000
2023 – $150,000 |
| SIMPLE IRA deferral limit | 2022 – $14,000
2023 – $15,500 |
| Code Section 457 deferred compensation plan deferral limit | 2022 – $20,500
2023 – $22,500 |
| Code Section 414(v) catch-up contribution limit for employee deferrals | 2022 – $6,500
2023 – $7,500 |
All of the above are plan year limits (i.e., for the plan year which begins in 2023), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.
In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $160,200 for 2023, which is an increase from the 2022 limit of $147,000.
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