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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