Benefit Plan and Payroll Limits for 2023 (Benefit Minute)

Posted in: Benefit Minute, Employee Benefits

Set forth below are the 2023 and 2022 limitations for qualified plans and other benefit related items:


2023 2022
401(k), 403(b), 457(b)(2) and 457(c)(1) elective deferral limit $22,500 $20,500
401(k), 403(b) and 457 catch-up contribution limit (if 50 or over) $7,500 $6,500
Defined benefit plan max/Maximum annual pension $265,000 $245,000
Defined contribution plan max/Maximum annual contribution $66,000 $61,000
Qualified plan annual compensation limit $330,000 $305,000
Highly compensated employee $150,000 $135,000
Key employee - officer $215,000 $200,000
SIMPLE retirement deferrals $15,500 $14,000
FICA tax rate (OASDI and HI) *plus additional .9% HI on wages over $200,000 Employee 7.65% / Employer 7.65% Employee 7.65%*/ Employer 7.65%
Social Security taxable wage base (OASDI only) $160,200 $147,000
ACA 4980H(a) “No Offer” penalty $2,880 $2,750
ACA 4980H(b) “Not Affordable/Not Minimum Value” penalty $4,320 $4,120
ACA affordability for employer mandate (percentage of household income) 9.12% 9.61%
ACA maximum out-of-pocket expenses for essential health benefits (non-grandfathered) Individual $9,100/ Family $18,200 Individual $8,700/ Family $17,400
Healthcare FSA maximum salary reduction $3,050 $ 2,850
Healthcare FSA maximum carryover into next plan year $610 $570
Qualified High Deductible Health Plan (QHDHP) minimum deductible Individual $1,500/ Family $3,000 Individual $1,400/ Family $2,800
Qualified High Deductible Health Plan (QHDHP) maximum out-of-pocket expenses Individual $7,500/ Family $15,000 Individual $7,050/ Family $14,100
HSA maximum annual contribution Individual $3,850/ Family $7,750 Individual $3,650/ Family $7,300
HSA catch-up contribution limit (if 55 or over) $1,000 $1,000
Maximum income exclusion for employer-provided adoption assistance $14,890 $14,440
Qualified parking monthly limit $280 $270
Transit passes/Vanpooling combined monthly limit $280 $270
Maximum income exclusion for employer-provided adoption assistance $15,950 $14,890
Qualified parking monthly limit $300 $280
Transit passes/Vanpooling combined monthly limit $300 $280

 

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