Professionals
Practices & Industries
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.