Most employee benefits are subject to dollar limits that are adjusted annually based on inflation. The Internal Revenue Service (IRS) recently issued Notice 2022-55, which provides cost-of-living adjustments to the annual dollar limits for various qualified retirement plan for 2023. Unlike years when inflation is low, most limits will be increasing for plan years effective January 1, 2023.
Employers may need to update their retirement plan designs in order to reflect the new 2023 limits. They should also communicate the new plan limits to their employees.
Click here to read the full IRS announcement.