December 2022 Newsletter

2023 Benefit Plan Limits and Thresholds

With a new year comes new benefit plan limits and thresholds as prescribed by the IRS.

Below is a reference guide for many of the most common plan limits and thresholds for 2023:

401(k) Plan Limits 

Maximum employee elective deferral                                   $22,500 (+$2,000 change)

Employee catch-up contribution (age 50 or older)               $7,500 (+1,000 change)

HSA and HDHP Limits

HSA contribution limit                      Self-only                     $3,850 (+200 change)

(employer + employee)                      Family                        $7,750 (+450 change)

HSA catch-up contributions                                                  $1,000 (no change)

(age 55 or older)

HDHP minimum deductibles            Self-only                     $1,500 (+100 change)

                                                            Family                        $3,000 (+200 change)

HDHP max. out-of-pocket                 Self-only                     $7,500 (+450 change)

                                                            Family                        $15,000 (+900 change)

Health FSA Limits

Health Care FSA and Limited FSAs                                    

Maximum salary deferral                                                      $3,050 (+200 change)

Maximum rollover amount                                                    $610 (+40 change)

Dependent Care FSA Limits

Maximum salary deferral                                                     

Single taxpayers and married couples filing jointly             $5,000 (no change)

Married couples filing separately                                          $2,500 (no change)

Qualified Small Employer Reimbursement Arrangements (QSEHRAs)

Maximum payments and reimbursements    Self-only         $5,850 (+400)

                                                                        Family            $11,800 (+750)

Commuter Transit and Parking Limits (monthly limits)

Transit passes/van pool services                                           $300 (+20)

(employee + employer)

Qualified Parking                                                                   $300 (+20)

Adoption Assistance

Excludable Amount                                                               $15,950 (+1,060 change)

Phase-out begins                                                                    $239,230 (+15,820 change)

Phase-out complete                                                                $279,230 (+15,820 change)

Earnings subject to Social Security Payroll Tax

Maximum earnings                                                                $160,200 (+13,200 change)

Subject to Social Security 12.4% FICA payroll tax (6.2% paid by employer and 6.2% paid by employee)

Have a Question?

Thank you!