November 23, 2022

2023 Benefit Limits Announced

Peter Bradley, Michael Flanagan, Josh Gmerek, Richard Kaiser, Ryan Murphy, Amy Walters

Hodgson Russ LLP

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Hodgson Russ LLP

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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.