Many employee benefits are subject to annual dollar limits adjusted for inflation before the beginning of each calendar year. Due to high inflation rates, many employee benefit plan limits will significantly increase in 2023. Some benefit limits are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs. For plan years beginning on or after Jan. 1, 2023, the following limits have increased:
• HSA contribution limits:
– Single coverage—$3,850 (up $200 from 2022)
– Family coverage—$7,750 (up $450 from 2022)
• Health FSA contribution limit—$3,050 (up $200 from 2022)
• Health FSA carryover limit—$610 (up $40 from 2022)
• Transportation fringe benefit plan monthly limits—$300 (up $20 from 2022)
• Employees’ 401(k) elective deferral limit—$22,500 (up $2,000 from 2022)
• Employees’ 401(k) catch-up contribution limit—$7,500 (up $1,000 from 2022)
Our HR Consulting team has the knowledge and expertise to help you and your business navigate the complexities of Human Resource. Please contact Kara Garibian or Drema Foster if you or your business needs assistance with Human Resources.