2023 Benefit Limits Announced
The Internal Revenue Service has announced the cost of living adjusted dollar limits applicable to benefit plans for 2023 (see IRS Notice 2022-55, Rev. Proc. 2022-38, and Rev. Proc. 2022-24). The key limits are listed below:
|
Retirement Benefits |
2022 Limit |
2023 Limit |
|
401(k)/403(b)/457 Plan Maximum Elective Deferral |
$20,500 |
$22,500 |
|
401(k)/403(b)/457 Catch-Up |
$6,500 |
$7,500 |
|
Defined Contribution Maximum Annual Addition |
$61,000 |
$66,000 |
|
Defined Benefit Maximum Annual Pension |
$245,000 |
$265,000 |
|
Qualified Plan Maximum Compensation Limit |
$305,000 |
$330,000 |
|
Highly Compensated Employee |
$135,000 |
$150,000 |
|
IRA Contribution Limit |
$6,000 |
$6,500 |
|
IRA Catch-Up Contributions |
$1,000 |
$1,000 |
|
Health Plan Benefits |
2022 Limit |
2023 Limit |
|
Health FSA Contribution Limit |
$2,850 |
$3,050 |
|
HSA Contribution Limit (Individual) |
$3,650 |
$3,850 |
|
HSA Contribution Limit (Family) |
$7,300 |
$7,750 |
|
HSA Catch-Up |
$1,000 |
$1,000 |
In addition, the Social Security taxable wage base will increase from $147,000 for 2022 to $160,200 for 2023.
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