The Internal Revenue Service announced the 2023 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2023. All of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17), the maximum annual contribution limit under Code Section 415(c) and the dollar limit for catch-up contributions (if age 50 or older) will increase from 2022 limits.
RETIREMENT PLAN LIMITS
Health Savings Account and High Deductible Health Plan Limits
Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2023. The HSA limit for self-only/family coverage will increase to $3,850 and $7,750, respectively for 2023. The maximum annual out-of-pocket expense limits for high deductible health plans for self-only and family coverage will increase in 2023.
HEALTH FLEXIBLE SPENDING ACCOUNTS
The IRS also released the health flexible spending account contribution rate for 2023. The rate increased by $200 from 2022, to $3,050. The carryover amount increased from $570 to $610 for 2023.
SOCIAL SECURITY WAGES BASE
Social Security Wage Base