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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.