January 2023 Compliance News Article
Puerto Rico 2023 Limits
The Puerto Rico Department of Treasury announced the 2023 limits for retirement plan sponsors of dually qualified plans and plans qualified solely in Puerto Rico.
New Limits
Description | 2022 | 2023 |
---|---|---|
Compensation | $305,000 | $330,000 |
Defined Contribution Annual Contribution Limit | $61,000 | $66,000 |
Defined Benefit Annual Benefit Limit | $245,000 | $265,000 |
Highly Compensated Employee* | $135,000 | $150,000 |
Pretax Elective Deferral – Dual Qualified | $20,000 | $20,000 |
Pretax Elective Deferral – Solely Qualified | $15,000 | $15,000 |
Catch-up – (Plan not sponsored by federal government and at least age 50 by plan year end) | $1,500 | $1,500 |
Catch-up (Only retirement plans sponsored by federal government and at least age 50by plan year end) | $6,500 | $7,500 |
After-Tax Voluntary –Solely Qualified | 10% of the participant’s maximum recognizable compensation for all years of participation in the retirement plan |
* Employee is highly compensated for 2023 if they received compensation in excess of $135,000 in 2022; or a shareholder owning over 5% of the voting shares or total value of all stock of the employer; or if the employer is not a corporation, owning over 5% of the capital or interest in the profits of the employer.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392.
Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com, Principal®, Principal Financial Group® and the Principal logo design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc., in various countries around the world.
© 2023 Principal Financial Services, Inc.
PQ11296JAN23-0