IRS Announces Largest Ever Increase in Contribution Limits for 2023

Today, the IRS announced the 2023 contribution limits for 401(k), 403(b) and most 457 plans, which will be $22,500 in 2023, up from $20,500.  The catch-up contribution limit, for employees age 50 and older, will increase to $7,500, up from $6,500.  This is being touted as the biggest increase ever in the deferral limits for these defined contribution plans, and will allow employees who are 50 and over to put away $30,000 for their retirement next year.