October 26, 2022

2023 Benefit Plan Limits

Employee Benefits

12 min read

The following table is a reference tool for employers that outlines 2023 health & welfare, retirement, commuter benefit, and adoption assistance plan maximum contribution limits^[1] compared to the current 2022 amounts.

Employers are advised to update applicable plan communications (e.g., open enrollment materials and summary plan descriptions) for 2023 and coordinate with their benefit administration and payroll vendors to ensure the relevant contribution limits are updated for January 1, 2023.

Health & Welfare Plan Limits

Health & Welfare Plan Limits		2023	2022	Change from 2022
Health Care Flexible Spending Account (FSA) contribution limit		$3,050	$2,850	+$200

Health Care Flexible Spending Account (FSA) maximum carryover amount		$610	$570	+$40

Health Savings Account (HSA) maximum contribution^[2]	Self-only coverage	$3,850	$3,650	+$200
Health Savings Account (HSA) maximum contribution^[2]	Family coverage	$7,750	$7,300	+$450

Health Savings Account (HSA) catch-up contribution limit		$1,000	$1,000	No Change

High-Deductible Health Plan (HDHP) minimum deductible	Self-only coverage	$1,500	$1,400	+$100
High-Deductible Health Plan (HDHP) minimum deductible	Family coverage	$3,000	$2,800	+$200

High-Deductible Health Plan (HDHP) maximum out-of-pocket^[3]	Self-only coverage	$7,500	$7,050	+$450
	Family coverage	$15,000	$14,100	+$900

Excepted Benefit Health Reimbursement Arrangement (EBHRA) maximum amount		$1,950	$1,800	+$150

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) maximum amount	Self-only coverage	$5,850	$5,450	+$400
	Family coverage	$11,800	$11,050	+$750

Retirement Plan Limits

Retirement Plan Limits	2023	2022	Change from 2022
Section 401(k)/403(b)/457(b)(2) Plans maximum elective deferrals	$22,500	$20,500	+$2,000

Section 401(k) or 403(b) Plans catch-up contribution limit	$7,500	$6,500	+$1,000

Section 415(c)(1)(A) defined contribution addition limitation	$66,000	$61,000	+5,000

Section 414(q)(1)(B) Highly compensated employee	$150,000	$135,000	+$15,000

Section 401(a)(17) Maximum includible compensation	$330,000	$305,000	+$25,000

Social Security FICA Taxable Wage Base (6.20%)	$160,200	$147,000	+$13,200

Commuter Benefit Limit

Commuter Benefit Limit	2023	2022	Change from 2022
Transit and Parking – contribution limit	$300	$280	+$20

Adoption Assistance Plan Limit

Adoption Assistance Plan Limit	2023	2022	Change from 2022
Adoption Assistance maximum contribution (including benefits provided for special needs children)	$15,950^[4]	$14,890	+$1,060

Please reach out to your Risk Strategies account team with any additional questions or contact us directly at benefits@risk-strategies.com.

[1] Revenue Procedure 2022-24; Revenue Procedure 2022-38; Revenue Procedure 2022-55

[2] Includes both employee and employer contribution amount limits

[3] Including deductibles, copayments and other amounts, but excluding premiums

[4] For 2023, the amount excludable from an employee's gross income begins to phase out under IRC Section 137(b)(2)(A) for taxpayers with modified adjusted gross income of more than $239,230 and is completely phased out for taxpayers with modified adjusted gross income of $279,230 or more.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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