Schwabe, Williamson & Wyatt
October 28, 2022 - Portland, Oregon
2023 Benefit Limits
by Schwabe, Williamson & Wyatt
The Internal Revenue Service and Social Security Administration have announced the various retirement plan benefit and employment tax limits for 2023. Certain limitations will not change for 2023 because they are not subject to annual adjustments. However, limits tied a cost of living index have increased.
The limits for 2023, as compared to those in effect for 2022, are set forth below.
| Retirement Plan Limits |
| |
2022 |
2023 |
| Limits on benefits and contributions |
|
|
| 401(k) & 403(b) plans, elective deferral limit |
$20,500 |
$22,500 |
| 457(b) plan, total contribution limit |
$20,500 |
$22,500 |
| Age 50 catch-up contribution limit |
$6,500 |
$7,500 |
| Defined contribution plan, total contribution limit |
$61,000 |
$66,000 |
| Defined benefit plan, annual accrual limit |
$245,000 |
$265,000 |
| “Highly compensated employee” status |
$135,000 |
$150,000 |
| Annual compensation limit |
$305,000 |
$330,000 |
| “Key employee” officer status |
$200,000 |
$215,000 |
| SIMPLE plans |
|
|
| Elective deferral limit |
$14,000 |
$15,500 |
| Catch-up contribution limit |
$3,000 |
$3,500 |
| IRAs |
|
|
| Contribution limit |
$6,000 |
$6,500 |
| Catch-up contribution limit |
$1,000 |
$1,000 |
| |
|
|
| Health Care FSA |
|
| |
2020 |
2021 |
| Annual salary reduction limit |
$2,850 |
$3,050 |
| |
|
|
| Health Savings Accounts |
| |
2020 |
2021 |
| Annual HSA contribution deduction limit |
|
|
| Self-only coverage |
$3,650 |
$3,850 |
| Family coverage |
$7,300 |
$7,750 |
| Catch-up contribution |
$1,000 |
$1,000 |
| Out-of-pocket spending limit |
|
|
| Self-only coverage |
$7,050 |
$7,500 |
| Family coverage |
$14,100 |
$15,000 |
| Minimum annual deductible |
|
|
| Self-only coverage |
$1,400 |
$1,500 |
| Family coverage |
$2,800 |
$3,000 |
| |
|
|
| Qualified Transportation Fringe Benefit |
| |
2020 |
2021 |
| Maximum monthly qualified parking benefit |
$280 |
$300 |
| Maximum monthly qualified transit pass benefit |
$280 |
$300 |
| |
|
|
| Social Security Limits |
| |
2020 |
2021 |
| FICA wage base |
$147,000 |
$160,200 |
| Earnings test thresholds |
|
|
| Before normal retirement age |
$19,560 |
$21,240 |
| Year of normal retirement age |
$51,960 |
$56,520 |
| Maximum monthly benefit at full retirement age |
$3,345 |
$3,627 |
| |
|
|
For further information regarding the 2023 benefit limits, please contact Jason Douthit at 503-796-2050 or [email protected].
This article summarizes aspects of the law and does not constitute legal advice. For legal advice for your situation, you should contact an attorney.
Read full article at: https://www.schwabe.com/newsroom-publications-2023-benefit-limits