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 | $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) | 2023 | 2022 | Change |
| HAS contribution limit (employer + employee) | Self-only: $3,850 Family: $7,750 | Self-only: $3,650 Family: $7,300 | Self-only: +$200 Family: +$450 |
| HAS catch-up contributions (age 55 or older) | $1,000 | $1,000 | no change (not indexed) |
| 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.
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) FSAs | 2023 | 2022 | Change |
| 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) | 2023 | 2022 | Change |
| 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 | $2,500 | no 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) | 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.
View Higher ACA Subsidies Expand Options for Small Employers and Retiree Plan Sponsors.
Commuter Transit and Parking Limits
| Qualified Transportation Benefit (monthly limits) | 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.
View Rethinking Commuter Benefits for a Hybrid-Work World.
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.
View Managing Adoption Assistance Benefits.
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.
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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