Special Compliance Alert: Federal Employee Benefits Plan Limits Updated for 2023

Federal law sets annual limits on various tax-preferred employee benefit plans. The IRS updates benefit limits periodically throughout the year. On October 18, 2022, the Internal Revenue Service (IRS) released Revenue Procedure 2022-38 updating limits for Flexible Spending Accounts (FSAs), commuter benefits, and other important benefits for 2023. The following chart compares the 2022 and 2023 limits for the most common types of plans and benefits.

Benefits Plan Limits Comparison

Benefits Plan Limits Comparison
Taxable Wage Base	2022	2023
Social Security Old Age, Survivors, and Disability Insurance (OASDI)	$147,000	$160,200
Medicare (Part A, hospitalization)	Unlimited	Unlimited
Health Flexible Spending Accounts (Health FSA)	2022	2023
Health FSA Maximum Contribution (per plan year)	$2,850	$3,050
Health FSA Maximum Carryover (per plan year)	$570	$610
Qualified Transportation Benefits	2022	2023
Parking	$280/month	$300/month
Transit Pass/Commuter Vehicle	$280/month	$300/month

Health Savings Accounts (HSA) Limits	2022 Self-Only	2022 Family	2023 Self-Only	2023 Family

Health Savings Accounts (HSA) Limits	2022 Self-Only	2022 Family	2023 Self-Only	2023 Family
HSA Maximum Contribution	$3,650	$7,300	$3,850	$7,750
HSA Maximum “Catch-Up” Contribution (age 55 or older)	$1,000	$1,000	$1,000	$1,000
High-Deductible Health Plan (HDHP) Minimum Deductible	$1,400	$2,800	$1,500	$3,000
High-Deductible Health Plan (HDHP) Embedded Minimum	N/A	$2,800	N/A	$3,000
HDHP Maximum Out-of-Pocket Expense	$7,050	$14,100	$7,500	$15,000

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EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.

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