Retirement Plan Limits 2023
Current and Historical Retirement Plan Limits
| Limitation |
2023 |
2022 |
2021 |
2020 |
2019 |
| Plan Compensation |
$330,000 |
$305,000 |
$290,000 |
$285,000 |
$280,000 |
| Highly Compensated Employee* |
$150,000 |
$135,000 |
$130,000 |
$130,000 |
$125,000 |
| Individual Retirement Account ("IRA") |
$6,500 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
| IRA Catch-up |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
| SIMPLE IRA |
$15,500 |
$14,000 |
$13,500 |
$13,500 |
$13,000 |
| 401(k) Deferrals |
$22,500 |
$20,500 |
$19,500 |
$19,500 |
$19,000 |
| 401(k) Catch-up |
$7,500 |
$6,500 |
$6,500 |
$6,500 |
$6,000 |
| Simplified Employee Pension ("SEP") |
$66,000 |
$61,000 |
$58,000 |
$57,000 |
$56,000 |
| Defined Contribution with Catch-up |
$73,500 |
$67,500 |
$64,500 |
$63,500 |
$62,000 |
| Defined Benefit Annuity |
$265,000 |
$245,000 |
$230,000 |
$230,000 |
$225,000 |
| Defined Benefit Lump Sum at Age 62 |
$3.4 million |
$3.2 million |
$2.9 million |
$2.9 million |
$2.9 million |
When a 401(k) or SEP is not enough, a Defined Benefit Plans has a much higher potential contribution limit. The Defined Benefit Plan limit varies on a number of factors, including the business owner's age and earned income. An actuarial calculation can determine how much you can contribute to a Defined Benefit Plan.
Need a Higher Retirement Plan Deduction?
| Limitation |
2023 |
2022 |
2021 |
| Plan Compensation |
$330,000 |
$305,000 |
$290,000 |
| Highly Compensated Employee* |
$150,000 |
$135,000 |
$130,000 |
| Individual Retirement Account ("IRA") |
$6,500 |
$6,000 |
$6,000 |
| IRA Catch-up |
$1,000 |
$1,000 |
$1,000 |
| SIMPLE IRA |
$15,500 |
$14,000 |
$13,500 |
| 401(k) Deferral |
$22,500 |
$20,500 |
$19,500 |
| 401(k) Catch-up |
$7,500 |
$6,500 |
$6,500 |
| Simplified Employee Pension ("SEP") |
$66,000 |
$61,000 |
$58,000 |
| Defined Contribution w/ Catch-up |
$73,500 |
$67,500 |
$64,500 |
| Defined Benefit Annuity |
$265,000 |
$245,000 |
$230,000 |
| Defined Benefit Lump Sum at Age 62 |
$3.4 MM |
$3.2 MM |
$2.9 MM |
* Highly Compensated Employees are determined using the prior year compensation. For example, an employee is generally Highly Compensated in 2024 if their 2023 compensation exceeds $150,000. Employees also may be Highly Compensated based on business ownership or attribution of business ownership.
