Defined Contribution

IRS Announces Updated DC Plan Limits for 2023

IRS Announces Updated DC Plan Limits for 2023
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The IRS announced the updated retirement plan limits for 2023, covering rules for defined contribution (DC) plans. Below, we highlight the notable 2023 IRS DC plan limits:

  • The annual contribution limit will increase 10% from $20,500 to $22,500.
  • After no change last year, the age 50 annual catch-up contribution limit will increase from $6,500 to $7,500.
  • The annual compensation limit will increase from $305,000 to $330,000.
  • With a larger increase than in prior years, the Section 415(c) limit will increase from $61,000 to $66,000.
  • The highly compensated employee threshold will increase from $135,000 to $150,000.

Visit the IRS publication to learn more.

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Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily verified the accuracy or completeness of or updated. This report is for informational purposes only and should not be construed as legal or tax advice on any matter. Any investment decision you make on the basis of this report is your sole responsibility. You should consult with legal and tax advisers before applying any of this information to your particular situation. Reference in this report to any product, service, or entity should not be construed as a recommendation, approval, affiliation, or endorsement of such product, service, or entity by Callan. Past performance is no guarantee of future results. This report may consist of statements of opinion, which are made as of the date they are expressed and are not statements of fact. The Callan Institute (the “Institute”) is, and will be, the sole owner and copyright holder of all material prepared or developed by the Institute. No party has the right to reproduce, revise, resell, disseminate externally, disseminate to subsidiaries or parents, or post on internal web sites any part of any material prepared or developed by the Institute, without the Institute’s permission. Institute clients only have the right to utilize such material internally in their business.

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