401(k) Plan Limits

Defined Contribution Plans20232022Change
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 $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.

​Source: IRS Notice 2022-55.


View For 2023, 401(k) Contribution Limit Rises to $22,500 with $7,500 ‘Catch-Up’

HAS and HDHP Limits

Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) 20232022Change
HAS contribution limit
(employer + employee)
Self-only: $3,850 Family: $7,750Self-only: $3,650 Family: $7,300Self-only: +$200 Family: +$450
HAS catch-up contributions
(age 55 or older)
$1,000$1,000no change
(not indexed)
HDHP minimum deductiblesSelf-only: $1,500 Family: $3,000Self-only: 1,400 Family: $2,800Self-only: +100 Family: +200
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)Self-only: $7,500 Family: $15,000Self-only: $7,050 Family: $14,100Self-only: +450 Family: +$900

Source: IRS Revenue Procedure 2022-24.

View IRS Announces Spike in 2023 Limits for HSAs and High-Deductible Health Plans.

Health FSA Limits

Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs20232022Change
Maximum salary deferral$3,050$2,850+$200
Maximum rollover amount$610$570+$40

Ssource: IRS Revenue Procedure 2022-38.

View 2023 Health FSA Contribution Cap Rises to $3,050.

Dependent Care FSA Limits

Dependent Care FSAs (DC-FSAs) also called Dependent Care Assistance Plans (DCAPs)20232022Change
Maximum salary deferral
(single taxpayers and married couples filing jointly)
$5,000$5,000

no change (not indexed)
Maximum salary deferral
(married couples filing separately)
$2,500$2,500no change (not indexed)

Source: IRS Revenue Procedure 2022-38.

View 2023 Health FSA Contribution Cap Rises to $3,050.

QSEHRA Limits

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) 20232022Change
Maximum payments and reimbursements through the QSEHRASelf-only: $5,850 Family: $11,800Self-only: $5,450 Family: $11,050Self-only: +$400 Family: +$750

Source: IRS Revenue Procedure 2022-38.

View Higher ACA Subsidies Expand Options for Small Employers and Retiree Plan Sponsors.

Commuter Transit and Parking Limits

Qualified Transportation Benefit
 (monthly limits)
20232022Change
Transit passes and van pool services (employer + employee)$300$280+$20
Qualified parking$300$280+$20

Source: IRS Revenue Procedure 2022-38.

View Rethinking Commuter Benefits for a Hybrid-Work World.

Adoption Assistance

Adoption Benefits
(Annual limits)
20232022Change
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.

View Managing Adoption Assistance Benefits.

Earnings Subject to Social Security Payroll Tax

Social Security (FICA) Payroll Tax20232022Change
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.

View 2023 Social Security Wage Cap Jumps to $160,200 for Payroll Taxes. For more on tax withholding, view 2023 Tax Bracket Changes Could Increase Workers’ Take-Home Pay.

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