PRIORITY ALERT: 2023 Benefits and Contribution Limits
On October 21, 2022, the Internal Revenue Service (IRS) announced benefit and contribution limits for employer-sponsored retirement plans for the 2023 tax year.
We’ve summarized the 2023 limits, and included the 2022 limits for comparison, here as well as the Benefits & Contributions page on the NRECA Employee Benefits website.
401(k) Pension Plan
| PLANS/DESCRIPTIONS | 2023 | 2022 | CODE SECTIONS |
|---|---|---|---|
| Maximum annual compensation for calculating employer contributions | $330,000 | $305,000 | IRC §401(a)(17)/404(I) |
| Compensation limit for the definition of highly compensated employees | W-2 greater than $135,000 in 2022 | W-2 greater than $130,000 in 2021 | IRC §414(q)(1)(B) |
| Maximum annual additions (employer plus all employee contributions) | Lesser of total compensation or $66,000 | Lesser of total compensation or $61,000 | IRC §415(c) |
| Maximum amount of elective deferrals | $22,500 | $20,500 | IRC §402(g)(1) |
| Age 50 and over catch-up contributions | $7,500 | $6,500 | IRC §414(v) |
| FICA taxable wage base (OASDI) | $160,200 | $147,000 | n/a |
NOTE: The 401(k) Pension Plan Payroll Deduction Authorization Form is also available under Benefit Forms > Retirement Forms.
Retirement Security Plan
| PLANS/DESCRIPTIONS | 2023 | 2022 | CODE SECTIONS |
|---|---|---|---|
| Maximum annual compensation for calculating benefit accruals | $330,000 | $305,000 | IRC §401(a)(17)/404(I) |
| Maximum annual annuity (payable in life-only form of benefit); Adjusted lower for other forms of benefit and for commencement before age 62 | $265,000 | $245,000 | IRC §415(b)(1)(A) |
NOTE: The Retirement Security Plan Payroll Deduction Authorization Form is also available under Benefit Forms > Retirement Forms.