2023 Cost-of-Living Changes

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Image of a "Cost of Living" receipt

In fall 2023, the IRS released the annual cost-of-living adjustments for various retirement plan limitations. Many of the limitations have increased for 2023.

Defined contribution plan dollar limit on annual additions
Maximum compensation* used to determine benefits or contributions
401(k) and 403(b) elective deferral limit
Catch-up contributions
Compensation defining highly compensated employee*
2023
$66,000
$330,000
$22,500
$7,500
$150,000
2022
$61,000
$305,000
$20,500
$6,500
$135,000

*Not applicable to Churches or Church Controlled Organizations (QCCOs).

For additional information from the IRS:

This information should not be considered tax or legal advice. GuideStone stands ready to assist your organization as you work with your legal and tax advisors by providing resource information that you and your advisors may find beneficial.