Employee Benefit Plan Limits Increase for 2023
Many employee benefits are subject to annual dollar limits that are updated for inflation before the beginning of each calendar year. Due to high inflation rates, many employee benefit plan limits will substantially increase in 2023. Note that some benefit limits are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs.
For plan years beginning on or after Jan. 1, 2023, the following limits have increased:
• HSA contribution limits:
o Single coverage—$3,850 (up $200 from 2022)
o Family coverage—$7,750 (up $450 from 2022)
• Health FSA contribution limit—$3,050 (up $200 from 2022)
• Health FSA carryover limit—$610 (up $40 from 2022)
• Transportation fringe benefit plan monthly limits—$300 (up $20 from 2022)
• Employees’ 401(k) elective deferral limit—$22,500 (up $2,000 from 2022)
• Employees’ 401(k) catch-up contribution limit—$7,500 (up $1,000 from 2022)
For questions regarding employer group benefits and options for your group, contact us at RCB & Associates, LLC or call 616-233-9050.