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    Employee Benefit Plan Limits for 2023

    Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits:

    • High deductible health plans (HDHPs) and health savings accounts (HSAs); 
    • Health flexible spending accounts (FSAs); 
    • 401(k) plans; and 
    • Transportation fringe benefit plans.

    The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.

    This Compliance Overview includes a chart of the inflation-adjusted limits for 2023. Due to high rates of inflation, all of these limits will substantially increase for 2023. Note that there are some benefit limits that are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs.

    Increased Limits

    • HSA contributions 
    • HDHP limits for minimum deductibles and out-of-pocket maximums 
    • Health FSA pre-tax contribution limit 
    • Health FSA carryover limit 
    • Monthly limits for transportation fringe benefit plans 
    • Employees’ elective deferrals to 401(k) plans, pre-tax and Roth 
    • Tax exclusion for adoption assistance benefits

    Unchanged Limits

    The following limits stay the same from year to year because they are not indexed for inflation:

    • Tax exclusion for dependent care FSA benefits 
    • Catch-up contributions to an HSA

    LINKS AND RESOURCES

    Limit20222023Change
    HSA Contribution Limit
    Self-only$3,650$3,850Up $200
    Family$7,300$7,750Up $450
    Catch-up Contribution$1,000$1,000No change
    HDHP Minimum Deductible
    Self-only$1,400$1,500Up $100
    Family$2,800$3,000Up $200
    HDHP Out-of-Pocket Maximum
    Self-only$7,050$7.500Up $450
    Family$14,100$15,000Up $900
    Health FSA
    Limit on employees’ pre-tax contributions$2,850$3,050Up $200
    Carryover limit$570$610Up $40
    Dependent Care FSA
    Tax Exclusion$5,000 ($2,500 if married and filing taxes separately$5,000 ($2,500 if married and filing taxes separatelyNo change
    Transportation Fringe Benefits (Monthly Limits)
    Transit pass and vanpooling (combined)$280$300Up $20
    Parking$280$300Up $20
    401(k) Contributions
    Employee elective deferrals$20,500$22,500Up $2,000
    Catch-up contributions$6,500$7,500Up $1,000
    Limit on total contributions$61,000$66,000Up $5,000
    Adoption Assistance Benefits
    Tax exclusion$14,890$15,950Up $1,060

    *Limits that are not adjusted for inflation