457 Plans In 2023, the maximum amount employees can contribute to a 457 deferred compensation plan through elective deferrals will increase to $22,500. Those who are 50 years old or older will have the option to contribute an additional $7,500, bringing the total to $30,000. Employees who qualify for the special pre-retirement catch-up provision may be able to contribute up to double the regular limit, totaling $45,000.
401(a) Plans For 2023, the total limit for contributions to 401(a) defined contribution plans, as stated in section 415(c)(1)(A), has been raised from $61,000 to $66,000. This limit includes both contributions made by employers and employees.
401(k) Plans The elective deferral limit for employee contributions to 401(k) plans will increase to $22,500 in 2023. Employees who are 50 years old or older will have the opportunity to contribute an additional $7,500, resulting in a total limit of $30,000. The maximum limit for both employee and employer contributions to 401(k) defined contribution plans, as outlined in section 415(c)(1)(A), has been raised from $61,000 to $66,000 (or $73,500 for those who are 50 years old or older).
403(b) Plans In 2023, the annual elective deferral limit for 403(b) plan employee contributions will rise to $22,500. Individuals who are 50 years old or older will have the option to contribute an extra $7,500, making the total limit $30,000. The maximum limit for both employee and employer contributions to 403(b) plans, as stated in section 415(c)(1)(A), has been increased from $61,000 to $66,000 (or $73,500 for those who are 50 years old or older).
IRAs The contribution limit for Traditional and Roth IRAs has been raised to $6,500. Individuals who are 50 years old or older are eligible to contribute an additional $1,000, resulting in a total limit of $7,500.
