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New Retirement Plan Limitations Announced by the IRS for 2023

On October 24, 2022, the IRS released IRS Notice 2022-55, providing for the new cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2023 Tax Year. Changes to the limits are based upon the Social Security cost-of-living increases. As there was a significant increase in the cost-of-living during the past twelve months, the applicable pension and retirement limitations have risen dramatically from the rates that have been in place for the 2022 Tax Year. The new rates will significantly increase the amounts that can be contributed for employees and by employees to retirement plans for the 2023 Tax Year.

Click here to see the 2023 plan limits.