New Year New Limits
2023 Contribution and Benefits Limits announced by Social Security and the IRS
| Social Security | 2022 | New Limits 2023 |
| Cost-of-living Adjustment (COLA) for December (payable in January). | 5.9% (12/21) |
8.7% (12/22) |
| FICA tax rate (combined rate is 7.65% for both employees and employers):
Social Security Medicare (Hospital Insurance). An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). |
6.20% 1.45% |
6.20% 1.45% |
| Maximum Social Security earnings for tax contributions and benefits. Medicare taxable earnings. |
$147,000 no limit |
$160,200 no limit |
| Earnings required to earn one credit (max. of four credits per year). | $1,510 | $1,640 |
| Retirement Earnings Test exempt amounts:
Under full retirement age (FRA) throughout year (age 67) |
$19,560 |
$21,240 |
| Gifts and Estates |
2021 |
New Limits 2023 |
| Annual Exclusion for gifts | $16,000 | $17,000 |
| Estate Exclusion Amount | $12,060,000 | $12,920,000 |
| Deductions | 2021 | New Limits 2023 |
| Standard deduction – Married Filing Jointly Single |
$25,900 $12,950 |
$27,700 |
| Personal Exemption | $0 | $0 |
| Retirement Plans | 2022 | New Limits 2023 |
| 401k/403b/457 Contribution Limit Catch-up for age 50+ |
$20,500 $6,500 |
$22,500 $7,500 |
| Limitation on elective deferrals to defined contribution plans | $61,000 | $66,000 |
| IRA/Roth IRA Contribution Limit Catch-up for age 50+ |
$6,000 $1,000 |
$6,500 $1,000 |
| Income Phaseouts for Roth Contributions – Single
Married Filing Jointly |
$129,000-$144,000
$204,000-$214,000 |
$138,000-$153,000
$218,000-$228,000 |