Plan Limits

COMMON RETIREMENT PLAN DOLLAR LIMITATIONS

	2023	2022	2021
401(k), 403(b), Profit Sharing Plans
Elective Deferral Limit	22,500	20,500	19,500
Catch-up Contributions	7,500	6,500	6,500
Compensation Limit	330,000	305,000	290,000
Annual Addition Limit	66,000	61,000	58,000
General
Taxable Wage Base	160,200	147,000	142,800
Highly Compensated Employee	150,000	135,000	130,000
Key Employee:
Officer	215,000	200,000	185,000
1% Owner	150,000	150,000	150,000

Restatement

PLAN RESTATEMENTS

Pre-Approved Defined Contribution Plans

The majority of profit sharing and 401(k) plans are on pre-approved plan documents.  These documents are required to be restated on a six year cycle as determined by the IRS.

All pre-approved defined contribution plan documents were required to be restated by April 30, 2016 to incorporate the provisions from the Pension Protection Act of 2006 (PPA).   We are currently in the Post PPA (Cycle 3) restatement window.  All plans must currently be restated by July 31, 2022.

Individually Designed Plans

All ESOPs we administer are individually designed plans drafted by an attorney. Some profit sharing and 401(k) plans are also individually designed plans.  Individually designed plans were on a five year restatement cycle but the IRS eliminated that pre-set schedule.  Plan restatements are now coordinated with the ERISA attorney.

Please contact KJ Retirement Consultants, LLC at (651) 797-3440 if you are not sure whether your plan document is an individually designed plan or a pre-approved plan.