Retirement Plan/IRA Limits for 2023
| Retirement Plan Limits | 2023 | 2022 | 2021 |
| Maximum Compensation: | $330,000 | $305,000 | $290,000 |
| Defined Benefit – Annual Benefit: | $265,000 | $245,000 | $230,000 |
| Defined Contribution Limit: | $66,000 | $61,000 | $58,000 |
| 401(k), 403(b), 457 Salary Deferral Limit: | $22,500 | $20,500 | $19,500 |
| 401(k), 403(b), 457 Age 50 Catch-Up: | $7,500 | $6,500 | $6,500 |
| SIMPLE Salary Deferral Limit: | $15,500 | $14,000 | $13,500 |
| SIMPLE Age 50 Catch-Up: | $3,500 | $3,000 | $3,000 |
| SEP Minimum Compensation: | $750 | $650 | $650 |
| Highly Compensated Employee: | $150,000 | $135,000 | $130,000 |
| Key Employee/Officer: | $215,000 | $200,000 | $185,000 |
| IRA Limits | 2023 | 2022 | ||
| IRA/Roth Maximum Contribution | $6,500 | $6,000 | ||
| IRA/Roth Catch-Up Contributions | $1,000 | $1,000 | ||
| Traditional IRA Deductibility | Single Filer's MAGI: | Married Filing Jointly MAGI: | Single Filer's MAGI: | Married Filing Jointly MAGI: |
| Full Deduction | < $73,000 | <$116,000 | <$68,000 | <$109,000 |
| Partial Deduction | $73,000 – $83,000 | $116,000 – $136,000 | $68,000 – $78,000 | $109,000 – $129,000 |
| No Deduction | > $83,000 | > $136,000 | > $78,000 | > $129,000 |
| If one spouse is covered by an employer-sponsored plan, MAGI phase-out range for deductible contribution by non-covered spouse in 2023: $218,000 – $228,000 (2022: $204,000 – $214,000) | ||||
| Roth IRA Eligibility | Single Filer's MAGI: | Married Filing Jointly MAGI: | Single Filer's MAGI: | Married Filing Jointly MAGI: |
| Full Contribution | < $138,000 | < $218,000 | < $129,000 | < $204,000 |
| Partial Contribution | $138,000 – $153,000 | $218,000 – $228,000 | $129,000 – $144,000 | $204,000 – $214,000 |
| Not Eligible | > $153,000 | > $228,000 | > $144,000 | > $214,000 |
Withdrawals
Age: < 59 1⁄2 = 10% penalty appliesPenalty exceptions: death, disabililty, substantially equal periodic payments (Rule 72(t)), purchase of first-time home, higher education expenses, medical expenses, health insurance, and distributions for certain declared Presidential Disaster Area relief
Age: 59 1⁄2 – 72 = No penalty. No mandatory withdrawals.
Age: > 72 = Required minimum distributions (RMDs)
RMD Exceptions: Roth IRAs and Qualified Plans if still working and not a 5% or greater owner (may be determined by plan document)
The information herein is taken from sources deemed reliable but is not guaranteed. Stifel does not provide tax or legal advice. Since tax laws are always subject to interpretation and possible changes, you should consult with an attorney, accountant, or other qualified tax advisor as it applies to your particular situation.
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