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October 21, 2022

IRS announces 2023 increases for retirement plan and IRA contributions, as well as COLA guidance affecting pension plan dollar limits

The IRS has announced (IR-2022-188) increases for 2023 to the amounts that individuals may contribute to their IRC Section 401(k) plans ($22,500, up $2,000) and individual retirement accounts ($6,500, up $500). Some catch-up contribution amounts and income ranges for determining eligibility to make deductible contributions will also increase. Further, in Notice 2022-55, the IRS provides guidance on the cost-of-living adjustments (COLA) affecting dollar limits for pension plans and other retirement-related items for 2023.