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Many employee benefits are subject to annual dollar limits which are adjusted for inflation by the IRS each year. Many limits will substantially increase for 2023 due to inflation.
|
Limit |
2023 |
Change |
|
HSA Contribution Limit |
||
|
Self-only |
$3,850 |
Up $200 |
|
Family |
$7,750 |
Up $450 |
|
Catch-up contributions* |
$1,000 |
No change |
|
HDHP Minimum Deductible |
||
|
Self-only |
$1,500 |
Up $100 |
|
Family |
$3,000 |
Up $200 |
|
HDHP Out-of-Pocket Deductible |
||
|
Self-only |
$7,500 |
Up $450 |
|
Family |
$15,000 |
Up $900 |
|
Health FSA |
||
|
Limit on employees’ pre-tax contributions |
$3,050 |
Up $200 |
|
Carryover limit |
$610 |
Up $40 |
|
Dependent Care FSA* |
||
|
Tax exclusion |
$5,000 ($2,500 if married and filing taxes separately) |
No change |
|
Transportation Fringe Benefits (Monthly Limits) |
||
|
Transit pass and vanpooling (combined) |
$300 |
Up $20 |
|
Parking |
$3000 |
Up $20 |
|
401(k) Contributions |
||
|
Employee elective deferrals |
$22,500 |
Up $2,000 |
|
Catch-up contributions |
$7,500 |
Up $1,000 |
|
Limit on total contributions |
$66,000 |
Up $5,000 |
|
Adoption Assistance Benefits |
||
|
Tax exclusion |
$15,950 |
Up $1,060 |
*Limits that are not adjusted for inflation.
Employers should update their benefit plan designs and communicate the new limits to their employees. Download the bulletin for more details.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
