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 5 |
$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.
5 For the 2023 plan year, an employee who earned more than $150,000 in 2022 is an HCE.
?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 |
Self-only: $3,850 Family: $7,750 |
Self-only: $3,650 Family: $7,300 |
Self-only: +$200 Family: +$450 |
|
HSA catch-up contributions |
$1,000 |
$1,000 |
no change |
|
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 |
Source: IRS Revenue Procedure 2021-45.
Dependent Care FSA Limits
|
Dependent Care FSAs (DC-FSAs) also called Dependent Care Assistance Plans (DCAPs) |
2023 |
2022 |
Change |
|
Maximum salary deferral |
$5,000 |
$5,000 |
no change (not indexed) |
|
Maximum salary deferral |
$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 |
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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