2023 Benefit Plan Limits & Thresholds Chart

Stephen Miller, CEBS By Stephen Miller, CEBS October 28, 2022
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2023 Benefit Plan Limits & Thresholds Chart

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401(k) Plan Limits

Defined Contribution Plans 2023 2022 Change

Maximum employee elective deferral (age 49 or younger) 1

$22,500

$20,500

+$2,000

Employee catch-up contribution (age 50 or older by year-end) 2

$7,500

$6,500

+$1,000

Maximum employee elective deferral plus catch-up contribution (age 50 or older)

$30,000

$27,000

+$3,000

Defined contribution maximum limit, employee + employer (age 49 or younger) 3

$66,000

$61,000

+$5,000

Defined contribution maximum limit (age 50 or older), all sources + catch-up

$73,500

$67,500

+$6,000

Employee compensation limit for calculating contributions

$330,000

$305,000

+$25,000

Key employees' compensation threshold for top-heavy plan testing 4

$215,000

$200,000

+$15,000

Highly compensated employees’ threshold for nondiscrimination testing 

$150,000

$135,000

+$15,000

1 The $22,500 elective deferral limit is also known as the 402(g) limit, after the relevant tax code section. Participants' annual contributions may not exceed 100% of their compensation.

2 The $7,500 catch-up contribution limit for participants age 50 or older applies from the start of the year for those turning 50 at any time during the year.

3 Total contributions from all sources may not exceed 100% of a participant's compensation.

4 Includes officers of the company sponsoring the plan.

​Source: IRS Notice 2022-55.


HSA and HDHP Limits

Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs)  2023 2022 Change

HSA contribution limit
(employer + employee)

Self-only: $3,850

Family: $7,750

Self-only: $3,650

Family: $7,300

Self-only: +$200

Family: +$450

HSA catch-up contributions
(age 55 or older)

$1,000

$1,000

no change
(not indexed)

HDHP minimum deductibles

Self-only: $1,500

Family: $3,000

Self-only: 1,400

Family: $2,800

Self-only: +100

Family: +200

HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)

Self-only: $7,500

Family: $15,000

Self-only: $7,050

Family: $14,100

Self-only: +450

Family: +$900

Source: IRS Revenue Procedure 2022-24.


Health FSA Limits

Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs

2023

2022

Change

Maximum salary deferral

$3,050

$2,850

+$200

Maximum rollover amount

$610

$570

+$40

SSource: IRS Revenue Procedure 2022-38.


Dependent Care FSA Limits

Dependent Care FSAs (DC-FSAs) also called Dependent Care Assistance Plans (DCAPs)

2023

2022

Change

Maximum salary deferral
(single taxpayers and married couples filing jointly)

$5,000

$5,000


no change (not indexed)

Maximum salary deferral
(married couples filing separately)

$2,500

$2,500

no change (not indexed)

Source: IRS Revenue Procedure 2022-38.


QSEHRA Limits

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs)  2023 2022 Change

Maximum payments and reimbursements through the QSEHRA

Self-only: $5,850

Family: $11,800

Self-only: $5,450

Family: $11,050

Self-only: +$400

Family: +$750

Source: IRS Revenue Procedure 2022-38.


Commuter Transit and Parking Limits

Qualified Transportation Benefit
 (monthly limits)

2023

2022

Change

Transit passes and van pool services (employer + employee)

$300

$280

+$20

Qualified parking

$300

$280

+$20

Source: IRS Revenue Procedure 2022-38.


Adoption Assistance

Adoption Benefits
(Annual limits)
2023 2022 Change

Excludable Amount

$15,950


$14,890


+$1,060


Phase-out income thresholds:




Phase-out begins

$239,230

$223,410

+$15,820

Phase-out complete

$279,230

$263,410

+$15,820

Source: IRS Revenue Procedure 202-38.



Earnings Subject to Social Security Payroll Tax

Social Security (FICA) Payroll Tax

2023

2022

Change

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

$160,200

$147,000

+$13,200

Source: Social Security Administration.


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