Tuesday, December 6, 2022
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2023 Worker Advantages Limits


Many worker advantages are topic to annual greenback limits which can be adjusted for inflation by the IRS annually. The next generally provided worker advantages are topic to those limits:

  • Excessive deductible well being plans (HDHPs) and well being financial savings accounts (HSAs);
  • Well being versatile spending accounts (FSAs);
  • 401(okay) plans; and
  • Transportation fringe profit plans.

The IRS sometimes pronounces the greenback limits that can apply for the following calendar yr properly earlier than the start of that yr. This provides employers time to replace their plan designs and ensure their plan administration is in step with the brand new limits.

This Compliance Overview features a chart of the inflation-adjusted limits for 2023. As a result of excessive charges of inflation, all of those limits will considerably improve for 2023. Observe that there are some profit limits that aren’t listed for inflation, such because the dependent care FSA restrict and the catch-up contribution restrict for HSAs.  

Elevated Worker Profit Limits

  • HSA contributions
  • HDHP limits for minimal deductibles and out-of-pocket maximums
  • Well being FSA pre-tax contribution restrict
  • Well being FSA carryover restrict
  • Month-to-month limits for transportation fringe profit plans
  • Workers’ elective deferrals to 401(okay) plans, pre-tax and Roth
  • Tax exclusion for adoption help advantages

Unchanged Worker Profit Limits

The next limits keep the identical from yr to yr as a result of they aren’t listed for inflation:

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

Worker Profit Plan Limits for 2023

Restrict 2022 2023 Change

HSA Contribution Restrict

Self-only $3,650 $3,850 Up $200
Household $7,300 $7,750 Up $450
Catch-up contributions* $1,000 $1,000 No change

HDHP Minimal Deductible

Self-only $1,400 $1,500 Up $100
Household $2,800 $3,000 Up $200

HDHP Out-of-Pocket Most

Self-only $7,050 $7,500 Up $450
Household $14,100 $15,000 Up $900

Well being FSA

Restrict on workers’ pre-tax contributions $2,850 $3,050 Up $200
Carryover restrict $570 $610 Up $40

Dependent Care FSA*

Tax exclusion $5,000 ($2,500 if married and submitting taxes individually) $5,000 ($2,500 if married and submitting taxes individually) No change

Transportation Fringe Advantages (Month-to-month Limits)

Transit move and vanpooling
(mixed)
$280 $300 Up $20
Parking $280 $300 Up $20

401(okay) Contributions

Worker elective deferrals $20,500 $22,500 Up $2,000
Catch-up contributions $6,500 $7,500 Up $1,000
Restrict on whole contributions $61,000 $66,000 Up $5,000

Adoption Help Advantages

Tax exclusion $14,890 $15,950 Up $1,060

*Limits that aren’t adjusted for inflation

©2022 Zywave, Inc. All rights reserved.

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