|
2022
|
2023 | |
| 401(k) PLANS/403(b) PLANS |
|
|
| The calendar year limitation on elective deferrals underIRC §402(g)(1). |
$20,500
|
$22,500 |
| Catch-up contribution amount under IRC §414(v)(2)(B)(i) for participants who are age 50 or older by the last day of the calendar year. |
$6,500
|
$7,500 |
| DEFINED CONTRIBUTION PLAN LIMITATION |
|
|
| The limitation for defined contribution plans (Profit Sharing, 401(k), Money Purchase) under IRC §415(c)(1)(A). This code section limits the allocation of contribution (salary deferral, match, employer contribution) to a participant to the lesser of 100% of compensation or this amount. Catch-up contributions (see above) may be made in addition to this amount. |
$61,000
|
$66,000 |
| HIGHLY COMPENSATED EMPLOYEE |
|
|
|
Compensation for purposes of defining highly compensated employees under IRC §414(q)(1)(B). A highly compensated employee is as follows:
This means if you earn over 120,000 during the Plan Year beginning in 2018* then you will be considered a highly compensated employee for the plan year beginning in 2019. *and, if elected, are in the top 20% of employees, ranked by compensation |
$135,000
|
$150,000 |
| COMPENSATION LIMIT |
|
|
| The annual compensation limit under IRC §401(a)(17) and §401(l). This is the maximum compensation amount which can be used for contribution allocations and discrimination testing. |
$305,000
|
$330,000 |
| KEY EMPLOYEE |
|
|
| Compensation for purposes of defining key employees |
$200,000
|
$215,000 |
