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 | ||
|---|---|---|
| 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 |
|---|---|---|---|---|
| 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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