Insights
Dollar Limitations for Employee Benefit Plans
Employee Benefits & Executive Compensation
The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. As a reminder for the new year, the adjusted dollar limits for 2023 are found below. (printer-friendly version)
| Retirement Plan Limits | ||
| 2022 Limit | 2023 Limit | |
| Maximum 401(k), 403(b), 457(b) Elective Deferral, and 402(g) limit ⬆ | $20,500 | $22,500 |
| Catch-Up Contribution Age 50 and Older (414(v)(2)(B)(i)) ⬆ | $6,500 | $7,500 |
| Highly Compensated Employee Threshold (414(q)(1)(B)) ⬆ | $135,000 | $150,000 |
| Annual Compensation Limit (401(a)(17)/404(l)) ⬆ | $305,000 | $330,000 |
| Defined Contribution Plan Annual Contribution Limit (415(c)(1)(A)) ⬆ | $61,000 | $66,000 |
| Defined Benefit Plan Annual Benefit Limit (415(b)(1)(A)) ⬆ | $245,000 | $265,000 |
| Top Heavy Key Employee Threshold (416(i)(1)(A)(i)) ⬆ | $200,000 | $215,000 |
| Social Security Taxable Wage Base ⬆ | $147,000 | $160,200 |
| Welfare Plan Limits | ||
| HSA Maximum Contributions (single/family) (223(b)(2)) ⬆ | $3,650/$7,300 | $3,850/$7,750 |
| HSA Max Catch-Up Contribution Age 55 & Older ⬌ | $1,000 | $1,000 |
| Health FSA Maximum ⬆ | $2,850 | $3,050 |
| Dependent Care Flexible Spending Account Maximum ⬌ | $5,000 | $5,000 |
| HDHP Minimum Deductibles (single/family) ⬆ | $1,400/$2,800 | $1,500/$3,000 |
| HDHP Maximum Out-of-Pocket Amounts (single/family) ⬆ | $7,050/$14,100 | $7,500/$15,000 |
| Maximum Monthly Qualified Transportation/Parking Fringe Benefit ⬆ | $280 | $300 |
If you have any questions, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Jim Hoch (jhoch@wyrick.com) or San Parikh (sparikh@wyrick.com).