IRS Contribution Limits

IRS Contribution Limits for 2023

Each year, the Internal Revenue Service determines if the contribution limits for things like retirement plans and health savings will increase. Based on cost of living adjustments, the agency recently announced increases to most of these contribution limits. Let’s take a look at the new IRS contribution limits for 2023.

Retirement Contribution Limits for 2023

The new limits for retirement contributions are as follows:

2023 Limit2022 LimitYearly Change
SIMPLE IRA Deferral$15,500$14,000+ $1,500
SIMPLE IRA Catch-Up (Over 50)$3,500$3,000+ $500
401(k)/403(b)/457 Deferral $22,500$20,500+ $2,000
401(k)/403(b)/457 Catch-Up (Over 50)$7,500$6,500+ $1,000
401(k)/403(b)/457 Contribution Limit (employee + employer)$66,000$61,000+ $5,000
401(k)/403(b)/457 Contribution Limit (employee + employer) (Over 50)$73,500$67,500+ $6,000
408(k) SEP Eligibility$750$650+ $100
401(a)(17) Employee Compensation Limit$330,000$305,000+ $25,000
Key Employees’ Compensation Threshold$215,000$200,000+ $15,000
Highly Compensated Employees’ Threshold$150,000$135,000+ $15,000

Additional Changes

Other changes in 2023 include:

Traditional IRA income phase-out ranges for 2023:

  • $73,000 to $83,000 for single taxpayers
  • $116,000 to $136,000 for married couples filing jointly
  • $218,000 to $228,0000 for married couples filing jointly with one non participating spouse

Roth IRA income phase-out ranges for 2023:

  • $138,000 to $153,000 for single taxpayers and heads of household
  • $218,000 to $228,000 for married couples filing jointly
  • $0 to $10,000 for married couples filing separately

Saver’s Credit income phase-out ranges for 2023 are:

  • $43,500 to $73,000 for married couples filing jointly
  • $32,625 to $54,750 for head of household
  • $21,750 to $36,500 for single and married individuals filing separately

HSA and FSA Contribution Limits

The IRS has also increased some of the contribution limits on health saving accounts (HSAs) and flexible spending accounts (FSAs) for 2023. Those limits are as follows.

2023 Limit2022 LimitYearly Change
HSA Contribution Limit (Self)$3,850$3,650+ $200
HSA Contribution Limit (Family)$7,750$7,300+ $450
HSA Catch-Up Contribution(Over 55)$1,000$1,000None
FSA Maximum Deferral$3,050$2,850+ $200
FSA Maximum Rollover$610$570+ $40
Dependent Care FSA Maximum Deferral$5,000$5,000None

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