MVP Plan Administrators, Inc. is pleased to announce the newly released Pension Plan Limitations for 2023.

Elective Deferrals 402(g) for 401(k), 403(b) and 457 Plans - This limit is combined for Roth or Pre-tax deferral elections.  The limit on elective deferrals (again a combined Roth or pre-tax) for participants in 401(k), 403(b) and 457 plans (excluding SIMPLE plans) is increased from $20,500 to $22,500.

Catch-up contributions 414(v)(2)(B)(i) - A participant who is at least age 50 before the end of the calendar year may be eligible to make catch-up contributions.  This amount is in addition to the Elective Deferrals and can be either a Roth or Pre-tax election.  The catch-up limit is increased from $6,500 to $7,500.

Simple Plans Elective Deferrals - This limit is combined for Roth or Pre-tax deferral elections.  The limit on elective deferrals (again a combined Roth or pre-tax) for participants is increased from $14,000 to $15,500.  

Simple Plans Catch-up contributions - This limit is combined for Roth or Pre-tax deferral elections.  The limit on elective deferrals (again a combined Roth or pre-tax) is increased from $3,000 to $3,500.

Limitation for Defined Contribution Plans 415(c)(1)(A) – This limitation is a total aggregate contribution including elective deferral (Pretax or ROTH) contributions, employer contributions and forfeitures.  This limit is increased from $61,000 to $66,000.  

The Annual Compensation Limit under Sections 401(a)(17), 404(l) – This is the maximum amount of compensation that may be considered for plan purposes. This limit is increased from $305,000 to $330,000.  

Social Security Taxable Wage Base – This is the dollar limitation that social security tax is paid.  This wage amount is also used in the formula for permitted disparity (integrated) plans and is increased from $147,000 to $160,200.  

The Limitation used to define a Highly Compensated Employee under Section 414(q)(1)(B) – This is the dollar limit for determining which participants will be considered Highly Compensated Employees.  This limit is increased from $135,000 to $150,000.

The Limitation used to define Key Employee under Section 416(i)(1)(A)(i) – This is the dollar limit used for determining which participants will be considered a Key Employee for a top-heavy plan.  This limit is increased from $200,000 to $215,000.