2023 Cost of Living Adjustments

By Louis F. LiBrandi, Principal

Plan sponsors should review the cost of living adjustments (COLAs) to determine what, if any, changes need to be communicated to employees by means of orientation meetings and enrollment forms. In addition, the amounts may need to be updated and/or input into the payroll or other human resources information systems used by the employer to monitor contributions made to an employee benefit plan.

The table below contains the dollar limitation for retirement plans and other benefit plan limits and thresholds for the 2021 through 2023 tax years. In 2023 most of the amounts have been increased.

Cost of Living Adjustments


Retirement Plans




402(g) Elective Deferrals.

Maximum salary-reduction contribution; 401(k), 403(b) and 457(b) plans.




Catch-up Contributions.

Age 50 or older additional salary reduction contributions; 401(k), 403(b), government 457(b) plans.




401(a)(17) Compensation Limit.  Ceiling for using compensation to determine benefits in a qualified retirement plan.




415(m) Maximum dollar amount for a defined contribution plan (excludes catch-up).




Highly Compensated Employee (HCE).

Compensation earned in a prior year is used to determine if a participant is a HCE.




Key Employee.  Minimum compensation for an officer to be treated as a ‘’key employee.”




Social Security Wage Base




Social Security Taxable Wage Base.




Welfare Plans




Health FSA Contribution Limit.




HSA Contribution Limit – Single.




HSA Contribution Limit – Family.




Catch-up Contributions.
Age 55 or older.




Contact us

The Employee Benefit Services Group at PKF O’Connor Davies is available to assist employers with all aspects of employee benefit plan compliance. For more information, please contact your client services partner or either of the following:

Timothy J. Desmond, CPA
Employee Benefit Services
[email protected] | 551.249.1728

Louis F. LiBrandi, EA, CEBS, ChFC, TGPC
Employee Benefit Services Group
[email protected] | 646.449.6327