The IRS has released the dollar limitations on benefits and contributions under qualified retirement plans for 2023. The notice, effective January 1, 2023, pertains to pension plans and retirement-related items.
401(k) Plan Limits
| Defined Contribution Plans | 2023 | 2022 | Change |
| Maximum employee elective deferral (age 49 or younger) | $22,500 | $20,500 | +$2,000 |
| Employee catch-up contribution (age 50 or older by year-end) | $7,500 | $6,500 | +$1,000 |
| Maximum employee elective deferral plus catch-up contribution (age 50 or older) | $30,000 | $27,000 | +$3,000 |
| Defined contribution maximum limit, employee + employer (age 49 or younger) | $66,000 | $61,000 | +$5,000 |
| Defined contribution maximum limit (age 50 or older), all sources + catch-up | $73,500 | $67,500 | +$6,000 |
| Employee compensation limit for calculating contributions | $330,000 | $305,000 | +$25,000 |
Defined Benefit Plans
| Defined Benefit Plan | 2023 | 2022 | Change |
| Limitation on the annual benefit under a defined benefit plan | $265,000 | $245,000 | +$20,000 |
Health and Welfare Plans
| Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) | 2023 | 2022 | Change |
| HSA Contribution Limit (employer + employee) | Self-only: $3,850 Family: $7,750 |
Self-only: $3,650 Family: $7,300 |
Self-only: +$200 Family: +$450 |
| HSA Catch-up Contributions (age 55 or older) | $1,000 | $1,000 | No Change |
| HDHP Minimum Deductibles | Self-only: $1,500 Family: $3,000 |
Self-only: $1,400 Family: $2,800 |
Self-only: $100 Family: $200 |
| HDHP Maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) | Self-only: $7,500 Family: $15,000 |
Self-only: $7,050 Family: $14,100 |
Self-only: +$450 Family: +$900 |
| Excepted Benefit HRA (EBHRA) Newly Available Limit | $1,950 | n/a | +$1,950 |
| Non-HSA Qualified Plans | 2023 | 2022 | Change |
| Out-of-Pocket Maximums – Self only | $9,100 | $8,700 | +$400 |
| Out-of-Pocket Maximums – Other than self-only coverage | $18,200 | $17,400 | +$800 |
| Health FSA Limits | 2023 | 2022 | Change |
| Maximum salary deferral | $3,050 | $2,850 | +$200 |
| Maximum rollover amount | $610 | $570 | +$40 |
| Dependent Care FSA Limits | 2023 | 2022 | Change |
| Maximum salary deferral (single taxpayers and married couples filing jointly) | $5,000 | $5,000 | No Change |
| Maximum salary deferral (married couples filing separately) | $2,500 | $2,500 | No Change |
Contact Us
For more information on this topic, please contact a member of Withum’s Multiemployer Benefit Plan Services Team.
