2023 IRS Limits Increases

Recently, the IRS announced its cost of living adjustments for the dollar limitations on flexible spending accounts, health savings accounts, and retirement plans for the 2023 tax year. Due to the increasing inflation, many of these limits went up significantly at some of the highest rates of this century.

Flexible Spending Account Increases20222023
Healthcare Deferral Limit$2,850$3,050
Healthcare Carryover Limit$570$610
Parking Limit$280$300
Mass Transit Limit$280$300
Dependent Care with Married and Joint Taxes or Head of House$5,000$5,000
Dependent Care with Married and Separate Taxes$2,500$2,500
Health Savings Accounts20222023
Contribution Limit – Self-Only$3,650$3,850
Contribution Limit – Family Coverage$7,750$7,750
Retirement Savings Increases20222023
401(k), 403(b), & 457(b) Elective Deferral Limit$20,500$22,500
Catch-Up Contribution Limit$6,500$7,500
Defined Contribution Limit$61,000$66,000
Defined Benefit Limit$245,000$265,000
Annual Compensation Limit$305,000$330,000
Highly-Compensated Employee Threshold$135,000$150,000
Top Heavy Key Employee Threshold$200,000$215,000
Social Security Taxable Wage Base$147,000$160,200

Questions on how to keep in compliance with these increases? Give us a call today!

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Eric Thieringer President
Eric Thieringer is president of Eli Advisors, an HR, payroll and employee benefits firm focused on serving small to mid-size organizations. Eli's services and support address the frustrating gaps that challenge employers and their employees. By solving these problems, Eli Advisors creates financially sustainable programs and services that help organizations attract, retain, and engage the talent needed to succeed.