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)

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.


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)
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)
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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