Annual Employee Benefit Plan Limits

The last of the 2023 employee benefits annual limits and numbers have now been finalized by the IRS. Here is a recap of all the finalized 2023 numbers:

HDHP and HSA Limits

2023

2022

HDHP Minimum Deductible – Self Only

$1,500

$1,400

HDHP Minimum Deductible – Family

$3,000

$2,800

HDHP OOP Limit – Self Only

$7,500

$7,050

HDHP OOP Limit – Family

$15,000

$14,100

HSA Contribution Limit – Self Only

$3,850

$3,650

HSA Contribution Limit – Family

$7,750

$7,300

HSA Contribution Limit – Catchup (55+)

$1,000

$1,000

ACA Limits

2023

2022

Health Plan OOP Limit - Self Only

$9,100

$8,700

Health Plan OOP Limit - Family

$18,200

$17,400

ACA Affordability Threshold

9.12%

9.61%

Flexible Spending Accounts (FSA)

2023

2022

Health FSA Election Maximum

$3,050

$2,850

Health FSA Rollover Maximum

$610

$570

Dependent Care Election Maximum (not indexed)

$5,000

$5,000

HRA Limits

2023

2022

QSEHRA - Self Only

$5,850

$5,450

QSEHRA - Family

$11,800

$11,050

EBHRA

$1,950

$1,800

Commute

2023

2022

Transit Pass Maximum (Monthly)

$300

$280

Parking (Monthly)

$300

$280

Bicycle (Monthly)

$20

Retirement Plans

2023

2022

Elective Deferral Maximum

$22,500

$20,500

Catch-up Maximum (50+)

$7,500

$6,500

Total Contribution Limit (<50)

$66,000

$61,000

Total Contribution Limit (50+)

$73,500

$67,500

401(a) Compensation Limit

$330,000

$305,000

Compensation Thresholds

2023

2022

Highly Compensated Employee (HCE)

$150,000

$135,000

Key Employee Officer Comp

$215,000

$200,000

Key Employee 1% Owner Comp

$150,000

$150,000

Other Limits

2023

2022

Educational Assistance (not indexed)

$5,250

$5,250

Adoption Assistance

$15,950

$14,890

Social Security Wage Base

$155,000

$147,000

Terms


HSA

The HSA is an individual Health Savings Account that is owned by the employee and may be used for the payment of medical expenses that are not covered by a qualified High Deductible Health Plan (HDHP), including expenses that go toward satisfying the deductible. This maximum is inclusive of employer and employee contributions.

FSA

A Health or Dependent Care Flexible Spending Account (FSA) allows participating employees to reduce their earnings on a pre-tax basis to pay for certain qualified expenses. Salary reductions provide significant tax savings to both the employee and the employer.

FSA Rollover (Carryover)

Employers may offer employees the option of rolling over a portion of their remaining Health FSA balance each year, to be used in the same type of plan during the following plan year. The final balance that is available for rollover will be determined after the current plan year’s claim submission deadline.

Transit

The Transit Plan allows employees to set money aside on a pre-tax basis for mass transit expenses. Employees get to use tax-free money for their commuting expenses when traveling to and from work.

Parking 

The Parking Plan allows employees to set money aside on a pre-tax basis for work-related parking expenses. Employees get to use tax-free money for parking at or near an office location or mass transit hub.

Tuition Reimbursement

With a Tuition Reimbursement Plan, the IRS allows employees to generally exclude from income amounts received from an employer-sponsored tuition assistance or educational assistance program (EAP) used to fund employee education-related expenses, subject to the maximum limit.

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