n-22-55.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

1

2023 Limitations Adjusted as Provided in Section 415(d), etc.

Notice 2022-55
Section 415 of the Internal Revenue Code (“Code”) provides for dollar limitations
on benefits and contributions under qualified retirement plans. Section 415(d) requires
that the Secretary of the Treasury annually adjust these limits for cost-of-living
increases. Other limitations applicable to deferred compensation plans are also affected
by these adjustments under section 415. Under section 415(d), the adjustments are to
be made under adjustment procedures similar to those used to adjust benefit amounts
under section 215(i)(2)(A) of the Social Security Act.
Cost-of-Living Adjusted Limits for 2023
Effective January 1, 2023, the limitation on the annual benefit under a defined
benefit plan under section 415(b)(1)(A) of the Code is increased from $245,000 to
$265,000.
For a participant who separated from service before January 1, 2023, the
participant’s limitation under a defined benefit plan under section 415(b)(1)(B) is
computed by multiplying the participant’s compensation limitation, as adjusted through
2022, by 1.0833.
The limitation for defined contribution plans under section 415(c)(1)(A) is
increased in 2023 from $61,000 to $66,000.
The Code provides that various other dollar amounts are to be adjusted at the
same time and in the same manner as the dollar limitation of section 415(b)(1)(A). After
taking into account the applicable rounding rules, the amounts for 2023 are as follows:
The limitation under section 402(g)(1) on the exclusion for elective deferrals
described in section 402(g)(3) is increased from $20,500 to $22,500.
The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C),
and 408(k)(6)(D)(ii) is increased from $305,000 to $330,000.
The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key
employee” in a top-heavy plan is increased from $200,000 to $215,000.
The dollar amount under section 409(o)(1)(C)(ii) for determining the maximum
account balance in an employee stock ownership plan subject to a 5-year
distribution period is increased from $1,230,000 to $1,330,000, while the dollar
amount used to determine the lengthening of the 5-year distribution period is
increased from $245,000 to $265,000.

2

The limitation used in the definition of “highly compensated employee” under
section 414(q)(1)(B) is increased from $135,000 to $150,000.
The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an
applicable employer plan other than a plan described in section 401(k)(11) or
section 408(p) for individuals aged 50 or over is increased from $6,500 to $7,500.
The dollar limitation under section 414(v)(2)(B)(ii) for catch-up contributions to an
applicable employer plan described in section 401(k)(11) or section 408(p) for
individuals aged 50 or over is increased from $3,000 to $3,500.
The annual compensation limitation under section 401(a)(17) for eligible
participants in certain governmental plans that, under the plan as in effect on
July 1, 1993, allowed cost-of-living adjustments to the compensation limitation
under the plan under section 401(a)(17) to be taken into account, is increased
from $450,000 to $490,000.
The compensation amount under section 408(k)(2)(C) regarding simplified
employee pensions (SEPs) is increased from $650 to $750.
The limitation under section 408(p)(2)(E) regarding SIMPLE retirement accounts
is increased from $14,000 to $15,500.
The limitation on the aggregate amount of length of service awards accruing with
respect to any year of service for any bona fide volunteer under
section 457(e)(11)(B)(ii) concerning deferred compensation plans of state and
local governments and tax-exempt organizations is increased from $6,500 to
$7,000.
The limitation on deferrals under section 457(e)(15) concerning deferred
compensation plans of state and local governments and tax-exempt
organizations is increased from $20,500 to $22,500.
The limitation under section 664(g)(7) concerning the qualified gratuitous transfer
of qualified employer securities to an employee stock ownership plan is
increased from $55,000 to $60,000.
The compensation amount under § 1.61-21(f)(5)(i) of the Income Tax
Regulations (“Regulations”) concerning the definition of “control employee” for
fringe benefit valuation purposes is increased from $120,000 to $130,000. The
compensation amount under § 1.61-21(f)(5)(iii) is increased from $245,000 to
$265,000.
The dollar limitation on premiums paid with respect to a qualifying longevity
annuity contract under § 1.401(a)(9)-6, A-17(b)(2)(i) of the Regulations is
increased from $145,000 to $155,000.
The Code provides that the $1,000,000,000 threshold used to determine whether
a multiemployer plan is a systemically important plan under

3

section 432(e)(9)(H)(v)(III)(aa) of the Code is adjusted using the cost-of-living
adjustment provided under section 432(e)(9)(H)(v)(III)(bb). After taking the applicable
rounding rule into account, the threshold used to determine whether a multiemployer
plan is a systemically important plan under section 432(e)(9)(H)(v)(III)(aa) is increased
from $1,220,000,000 to $1,256,000,000.
The Code also provides that several retirement-related amounts are to be
adjusted using the cost-of-living adjustment under section 1(f)(3). After taking the
applicable rounding rules into account, the amounts for 2023 are as follows:
The adjusted gross income limitation under section 25B(b)(1)(A) for determining
the retirement savings contributions credit for married taxpayers filing a joint
return is increased from $41,000 to $43,500; the limitation under
section 25B(b)(1)(B) is increased from $44,000 to $47,500; and the limitation
under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $68,000 to
$73,000.
The adjusted gross income limitation under section 25B(b)(1)(A) for determining
the retirement savings contributions credit for taxpayers filing as head of
household is increased from $30,750 to $32,625; the limitation under
section 25B(b)(1)(B) is increased from $33,000 to $35,625; and the limitation
under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $51,000 to
$54,750.
The adjusted gross income limitation under section 25B(b)(1)(A) for determining
the retirement savings contributions credit for all other taxpayers is increased
from $20,500 to $21,750; the limitation under section 25B(b)(1)(B) is increased
from $22,000 to $23,750; and the limitation under sections 25B(b)(1)(C) and
25B(b)(1)(D) is increased from $34,000 to $36,500.
The deductible amount under sections 219(b)(5)(A) for an individual making
qualified retirement contributions is increased from $6,000 to $6,500.
The applicable dollar amount under section 219(g)(3)(B)(i) for determining the
deductible amount of an IRA contribution for taxpayers who are active
participants filing a joint return or as a qualifying widow(er) is increased from
$109,000 to $116,000. The applicable dollar amount under
section 219(g)(3)(B)(ii) for all other taxpayers who are active participants (other
than married taxpayers filing separate returns) is increased from $68,000 to
$73,000. If an individual or the individual’s spouse is an active participant, the
applicable dollar amount under section 219(g)(3)(B)(iii) for a married individual
filing a separate return is not subject to an annual cost-of-living adjustment and
remains $0. The applicable dollar amount under section 219(g)(7)(A) for a
taxpayer who is not an active participant but whose spouse is an active
participant is increased from $204,000 to $218,000.

4

Accordingly, under section 219(g)(2)(A), the deduction for taxpayers making
contributions to a traditional IRA is phased out for single individuals and heads of
household who are active participants in a qualified plan (or another retirement
plan specified in section 219(g)(5)) and have adjusted gross incomes (as defined
in section 219(g)(3)(A)) between $73,000 and $83,000, increased from between
$68,000 and $78,000. For married couples filing jointly, if the spouse who makes
the IRA contribution is an active participant, the income phase-out range is
between $116,000 and $136,000, increased from between $109,000 and
$129,000. For an IRA contributor who is not an active participant and is married
to someone who is an active participant, the deduction is phased out if the
couple’s income is between $218,000 and $228,000, increased from between
$204,000 and $214,000. For a married individual filing a separate return who is
an active participant, the phase-out range is not subject to an annual
cost-of-living adjustment and remains $0 to $10,000.
The adjusted gross income limitation under section 408A(c)(3)(B)(ii)(I) for
determining the maximum Roth IRA contribution for married taxpayers filing a
joint return or for taxpayers filing as a qualifying widow(er) is increased from
$204,000 to $218,000. The adjusted gross income limitation under
section 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers
filing separate returns) is increased from $129,000 to $138,000. The applicable
dollar amount under section 408A(c)(3)(B)(ii)(III) for a married individual filing a
separate return is not subject to an annual cost-of-living adjustment and remains
$0.
Accordingly, under section 408A(c)(3)(A), the adjusted gross income phase-out
range for taxpayers making contributions to a Roth IRA is between $218,000 and
$228,000 for married couples filing jointly, increased from between $204,000 and
$214,000. For singles and heads of household, the income phase-out range is
between $138,000 and $153,000, increased from between $129,000 and
$144,000. For a married individual filing a separate return, the phase-out range is
not subject to an annual cost-of-living adjustment and remains between $0 and
$10,000.
Drafting Information
The principal author of this notice is Tom Morgan of the Office of Associate Chief
Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes).
However, other personnel from the IRS participated in the development of this
guidance. For further information regarding this notice, contact Mr. Morgan at
(202) 317-6700 or Greg Davis at (443) 853-5590 (not toll-free calls).