IRA and 401(k) contribution limits for 2023

November 14, 2022 | Alliant Credit Union

The IRS recently announced the 2023 cost-of-living adjustments made to contribution limits and income thresholds for retirement plans. Because of high inflation, the limit jumps for 2023 are more significant than in typical years.  


  • 2023 contribution limits for employee 401(k) plans will increase by $2,000 to $22,500.
  • 2023 catch-up contribution limits for 401(k) participants aged 50 and older will increase by $1,000 to $7,500.

Traditional IRAs (individual retirement account)

  • The annual contribution cap for individual retirement accounts (IRA) is increasing by $500 to $6,500 per eligible individual.
  • IRA catch-up contributions for those 50 and over, which are not indexed for inflation, remain capped at an additional $1,000 ($7,500 total contribution).
  • The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $73,000 and $83,000, up $5,000 from the 2022 phase-out range.
  • For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out increases by $7,000 to a range of $116,000 to $136,000. 
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction phase-out range was increased to between $218,000 and $228,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Roth IRAs

  • For married couples filing jointly, the income phase-out range for taxpayers contributing to a Roth IRA is an AGI of $218,000 to $228,000, an increase of $14,000 from 2022.
  • For singles and heads of household, the Roth IRA income phase-out range is an AGI of $138,000 to $153,000 (a $9,000 increase from 2022).
  • For a married individual filing a separate return, the Roth IRA phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000

 Summary of 2023 contribution limits and income thresholds vs 2022

      2022 2023
Individual Retirement Accounts (IRAs)                                                       
IRA Contribution Limit $6,000 $6,500
IRA Catch-Up Contributions 1,000 1,000
IRA AGI Deduction Phase-out Starting at 
Joint Return $109,000 $116,000
Single or Head of Household 68,000 73,000

SEP Minimum Compensation $650 $750
SEP Maximum Contribution 61,000 66,000
SEP Maximum Compensation 305,000 330,000
SIMPLE Maximum Contributions $14,000 $15,500
Catch-up Contributions 3,000 3,500
401(k), 403(b), Profit-Sharing Plans, etc.     
Annual Compensation  $305,000 $330,000
Elective Deferrals 20,500 22,500
Catch-up Contributions 6,500 7,500
Defined Contribution Limits 67,500 73,500
ESOP Limits 1,230,000 1,330,000
HCE Threshold $135,000 $150,000
Defined Benefit Limits 245,000 265,000
Key Employee 200,000 215,000
457 Elective Deferrals 20,500 22,500
Control Employee (board member or officer) 120,000 130,000
Control Employee (compensation-based) 245,000 265,000
Social Security Taxable Wage Limit 147,000 160,200


While the information provided is based on our understanding of current tax laws, and has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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