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 |
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 |
|
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 |
|
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 |
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) |
$150,000 |
$135,000 |
+$15,000 |
|
Section 401(a)(17) Maximum includible compensation |
$330,000 |
$305,000 |
+$25,000 |
|
Social Security |
$160,200 |
$147,000 |
+$13,200 |
|
Commuter Benefit Limit |
2023 |
2022 |
Change from 2022 |
|
Transit and Parking – contribution limit |
$300 |
$280 |
+$20 |
|
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.