IRA Contribution Amounts
Annual limitations for IRA contributions and deductibility for those who are active participants in employer-sponsored retirement plans are subject to annual cost-of-living adjustments (COLAs) and are as follows for 2023.
- Traditional and Roth IRA contributions: $6,500 ($6,000 for 2022) plus $1,000 catch-up contribution (not subject to COLAs)
- Traditional IRA deductibility phase-out for single taxpayers participating in employer plans rises to $73,000 to $83,000 (was $68,000 to $78,000)
- Traditional IRA deductibility phase-out for married joint filing taxpayers participating in employer plans rises to $116,000 to $136,000 (was $109,000 to $129,000)
- Traditional IRA deductibility phase-out for married with spouse an active participant in employer plan rises to $218,000 to $228,000 (was $204,000 to $214,000)
- Roth IRA income phase-out for determining maximum contribution for married joint filers rises to $218,000 to $228,000 (was $204,000 to $214,000)
- Roth IRA income phase-out for determining maximum contribution for single filers and heads-of-households rises to $138,000 to $153,000 (was $129,000 to $144,000)
Employer-Sponsored Retirement Plans
The following are key employer-sponsored retirement plan limitations that affect defined contribution plans (e.g., 401(k) plans), defined benefit plans, 403(b) plans, governmental 457(b) plans, simplified employee pension (SEP) plans, and savings incentive match plan for employees of small employers (SIMPLE) IRA plans. These are subject to annual COLAs and are as follows for 2023.
- Annual additions under Internal Revenue Code Section (IRC Sec.) 415(c)(1)(A) for defined contribution plans: $66,000 ($61,000 for 2022)
- Annual additions under IRC Sec. 415(b)(1)(A) for defined benefit pension plans: $265,000 ($245,000 for 2022)
- Annual deferral (402(g)) limit for 401(k), 403(b), and 457(b) plans: $22,500 ($20,500 for 2022)
- Catch-up contributions to 401(k), 403(b), and 457(b) plans: $7,500 ($6,500 for 2022)
- Annual deferral limit for SIMPLE IRA and SIMPLE 401(k) plans: $15,500 ($14,000 for 2022)
- Catch-up contributions for SIMPLE IRA and SIMPLE 401(k) plans: $3,500 ($3,000 for 2022)
- IRC Sec. 401(a)(17) compensation cap: $330,000 ($305,000 for 2022)
- Highly compensated employee (HCE) definition income threshold: $150,000 ($135,000 for 2022)
- Top-heavy determination key employee definition income threshold: $215,000 ($200,00 for 2022)
- SEP plan employee income threshold for benefit eligibility: $750 ($650 for 2022)
- Qualifying longevity annuity contract (QLAC) amount excludible from required minimum distribution determinations: $145,000 ($155,000 for 2022)
Retirement Services Team
StoneX Financial Inc.
Information provided is for educational purposes only and is subject to change. Dawson James Securities, Inc. and its affiliates do not provide legal or tax advice. Please consult your tax professional regarding your unique situation and visit IRS.gov for the most up-to-date information.