How will the 401(k) plan limits change in 2023?

Here's how the 401 (k) plan limits will change in 2023: The 401 (k) contribution limit is $22,500. The 401 (k) catch-up contribution limit is $7,500 for those age 50 and older. The limit for employer and employee contributions will be $66,000. The 401 (k) compensation limit will climb to $330,000.

How much can you contribute to a 401(k) in 2023?

The IRS has released 2023 inflation-adjusted contribution limits, phase-out ranges, and income limits for various retirement accounts. ( IR 2022-188 ; Notice 2022-55, 2022-45 IRB) For 2023, the amount an individual can contribute to a 401 (k), 403 (b), and most 457 plans increases to $22,500, up from $20,500 in 2022.

What is the 401(k) catch-up contribution limit in 2023?

The catch-up contribution limit will be $7,500 in 2023, up from $6,500 in 2022. Older workers can defer paying income tax on as much as $30,000 in a 401 (k) plan in 2023. "If you have preset your savings limits at a fixed amount based on plan maximums, make sure you pay attention to your own age," DeLucas says.