Internal Revenue Code 415(b) Limits
Internal Revenue Code Section 415(b) imposes a dollar limit on the benefit amount the Maryland State Retirement Agency can pay from tax-deferred plan funds. Because some members may retire at a relatively early age with a high percentage of highest average final compensation, a few may encounter this limit. The IRC 415(b) limit increases as the age at retirement increases. The abbreviated table below applies for persons retiring in 2023. The table outlines the annual benefit limitation amounts for non-disability, non-police retirees.