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 to a cost of living index have increased.The limits for 2023, as compared to those in effect for 2022, are set forth below.
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Retirement Plan Limits
Limits on benefits and contributions 2022 2023
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
2022 2023   
Annual salary reduction limit $2,850 $3,050
Health Savings Accounts
Annual HSA contribution deduction limit 2022 2023
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
2022 2023
Maximum monthly qualified parking benefit $280 $300
Maximum monthly qualified transit pass benefit $280 $300
Social Security Limits
2022 2023
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 jdouthit@schwabe.com.

This article summarizes aspects of the law and does not constitute legal advice. For legal advice for your situation, you should contact an attorney.

 

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