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Employee Benefit Plan Limits for 2023
Employee Benefit Plan Limits for 2023
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Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits:

  • High deductible health plans (HDHPs) and health savings accounts (HSAs);
  • Health flexible spending accounts (FSAs);
  • 401(k) plans; and
  • Transportation fringe benefit plans.

The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.

Links and Resources

This Compliance Overview includes a chart of the inflation-adjusted limits for 2023. Due to high rates of inflation, all of these limits will substantially increase for 2023.

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Increased Limits:

  • HSA contributions
  • HDHP limits for minimum deductibles and out-of-pocket maximums
  • Health FSA pre-tax contribution limit
  • Health FSA carryover limit
  • Monthly limits for transportation fringe benefit plans
  • Employees’ elective deferrals to 401(k) plans, pre-tax and Roth
  • The tax exclusion for adoption assistance benefits

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