What is the maximum contribution limit for employee salary deferrals for 401(k) plans in 2023?

The maximum contribution limit for employee salary deferrals for 401(k) plans in 2023 is indeed $22,500. This figure reflects the annual limit set by the IRS for elective deferrals made by employees to their 401(k) plans. It is important to note that this limit is periodically adjusted for inflation, and the amount for 2023 indicates an increase from previous years.

In addition to the standard contribution limit, individuals aged 50 and older can make catch-up contributions, which allows them to contribute an additional amount. However, the core limit for those under 50 is clearly defined, and understanding this limit is essential for accurate plan administration and ensuring tax compliance for participants.

This information is vital for both plan participants and administrators to make informed decisions regarding retirement savings and contributions for the year.