The IRS has announced cost-of-living adjustments (COLAs) affecting the dollar limits related to retirement plans for the 2023 calendar year. Great news- elective deferral limits have increased for both the 403(b) and 457(b) retirement plans. Annual limits for both plans will increase to $22,500, up from $20,500 in 2022. The catch-up contributions allowed for individuals age 50+ will increase from $6,500 to $7,500.
Remember to log into TIAA PlanFocus and adjust your contribution if you wish to take advantage of the higher retirement salary deferrals. You can access your TIAA account through the Human Resources section of your MyUAH page. The first pay-period in which the higher limit is allowed begins effective 12/14/2022, and is paid on the 01/06/2023 check. There is a calculator attached to this email which will assist you in determining the percentage of your earnings you can contribute if you wish to reach the annual limit.
If no changes are made, your current contribution amount will continue to be withheld as is from your check. There is no action required unless you would like to increase your retirement contribution(s). Remember, voluntary retirement contribution changes can be made at any time throughout the year.
|
Plan
|
2022 Annual Limit
|
2023 Annual limit
|
Annual Increase
|
Catch-up provision
age 50+
|
Total Annual limit
age 50+
|
|
403(b)
|
$20,500
|
$22,500
|
$2,000
|
$7,500
|
$30,000
|
|
457(b)
|
$20,500
|
$22,500
|
$2,000
|
$7,500
|
$30,000
|
|
TOTAL
|
|
$45,000
|
|
|
$60,000
|