IRS Contribution Limits for 2023
Each year, the Internal Revenue Service determines if the contribution limits for things like retirement plans and health savings will increase. Based on cost of living adjustments, the agency recently announced increases to most of these contribution limits. Let’s take a look at the new IRS contribution limits for 2023.
Retirement Contribution Limits for 2023
The new limits for retirement contributions are as follows:
| 2023 Limit | 2022 Limit | Yearly Change | |
| SIMPLE IRA Deferral | $15,500 | $14,000 | + $1,500 |
| SIMPLE IRA Catch-Up (Over 50) | $3,500 | $3,000 | + $500 |
| 401(k)/403(b)/457 Deferral | $22,500 | $20,500 | + $2,000 |
| 401(k)/403(b)/457 Catch-Up (Over 50) | $7,500 | $6,500 | + $1,000 |
| 401(k)/403(b)/457 Contribution Limit (employee + employer) | $66,000 | $61,000 | + $5,000 |
| 401(k)/403(b)/457 Contribution Limit (employee + employer) (Over 50) | $73,500 | $67,500 | + $6,000 |
| 408(k) SEP Eligibility | $750 | $650 | + $100 |
| 401(a)(17) Employee Compensation Limit | $330,000 | $305,000 | + $25,000 |
| Key Employees’ Compensation Threshold | $215,000 | $200,000 | + $15,000 |
| Highly Compensated Employees’ Threshold | $150,000 | $135,000 | + $15,000 |
Additional Changes
Other changes in 2023 include:
Traditional IRA income phase-out ranges for 2023:
- $73,000 to $83,000 for single taxpayers
- $116,000 to $136,000 for married couples filing jointly
- $218,000 to $228,0000 for married couples filing jointly with one non participating spouse
Roth IRA income phase-out ranges for 2023:
- $138,000 to $153,000 for single taxpayers and heads of household
- $218,000 to $228,000 for married couples filing jointly
- $0 to $10,000 for married couples filing separately
Saver’s Credit income phase-out ranges for 2023 are:
- $43,500 to $73,000 for married couples filing jointly
- $32,625 to $54,750 for head of household
- $21,750 to $36,500 for single and married individuals filing separately
HSA and FSA Contribution Limits
The IRS has also increased some of the contribution limits on health saving accounts (HSAs) and flexible spending accounts (FSAs) for 2023. Those limits are as follows.
| 2023 Limit | 2022 Limit | Yearly Change | |
| HSA Contribution Limit (Self) | $3,850 | $3,650 | + $200 |
| HSA Contribution Limit (Family) | $7,750 | $7,300 | + $450 |
| HSA Catch-Up Contribution(Over 55) | $1,000 | $1,000 | None |
| FSA Maximum Deferral | $3,050 | $2,850 | + $200 |
| FSA Maximum Rollover | $610 | $570 | + $40 |
| Dependent Care FSA Maximum Deferral | $5,000 | $5,000 | None |