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 |
