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2023 IRS Employee Benefit Plan Limits

The Internal Revenue Service (IRS) has released all employee benefit plan limits for the 2023 calendar year.

These limits are adjusted for inflation on an annual basis. In some cases, limits are the same as those in the calendar year 2022.

IRS Employee Benefit Plan Limits





Health FSA Maximum $2,850 $3,050 $200 Increase
Health FSA Maximum Carryover $570 $610 $40 Increase
Dependent Care FSA Maximum $5,000 $5,000 No Change
HSA Contribution—Single Enrollment $3,650 $3,850 $200 Increase
HSA Contribution—Family Enrollment $7,300 $7,750 $450 Increase
HSA Catch-Up Contribution
(Age 55+)
$1,000 $1,000 No Change
HDHP Minimum Deductible—Single Enrollment $1,400 $1,500 $100 Increase
HDHP Minimum Deductible—Family Enrollment $2,800 $3,000 $200 Increase
HDHP Maximum Out-of-Pocket—Single Enrollment $7,050 $7,500 $450 Increase
HDHP Maximum Out-of-Pocket—Family Enrollment $14,100 $15,000 $900 Increase
ACA Maximum Out-of-Pocket—Individual $8,700 $9,100 $400 Increase
ACA Maximum Out-of-Pocket—Family $17,400 $18,200 $800 Increase
Excepted Benefit HRA (EBHRA) $1,800 $1,950 $150 Increase
Qualified Transportation—Parking (Monthly) $280 $300 $20 Increase
Qualified Transportation—Transit (Monthly) $280 $300 $20 Increase
Adoption Assistance Maximum $14,890 $15,950 $1,060 Increase
401(k), 403(b), & 457(b) Plan Maximum Elective Deferral $20,500 $22,500 $2,000 Increase
Retirement Plan Catch-Up Contribution (Age 50+) $6,500 $7,500 $1,000 Increase
Highly Compensated Employee—Compensation Threshold $135,000 $150,000 $15,000 Increase
Key Employee—Officer Compensation Threshold $200,000 $215,000 $15,000 Increase
Social Security Wage Base (6.2% Tax Rate) $147,000 $160,200 $13,200 Increase

IRS ACA Employer Shared Responsibility





4980H(a) Penalty for Not Offering Health Coverage $2,750 $2,880 $130 Increase
4980H(b) Penalty for FT EEs With Premium Tax Credit $4,120 $4,320 $200 Increase
Affordability: Maximum Percent of Income $9.61% $9.12% 49% Decrease
Prior Year FPL (Single Person Household) for Affordability $12,880 $13,590 $710 Increase
Affordability: Maximum Monthly Contribution Based on FPL $103.14 $103.28 $0.14 Increase

HDHP and ACA Maximum Out of Pocket Limits

An individual’s maximum out of pocket cannot be higher than the ACA maximum for an individual, even when covered through family HDHP enrollment.

Highly Compensated Employees

The compensation threshold increases to $150,000 for prior plan year compensation. This group can be further limited to the top 20% of all eligible employees, ranked by compensation.

Key Employees

The compensation threshold for officers increases to $215,000. The compensation threshold for more-than-1%-owners remains $150,000 (not indexed). The Key Employee group also includes all 5% owners regardless of income.


Annual per employee penalty for large employers who do not offer coverage to at least 95% of full-time employees. If any full-time employee enrolls in Marketplace coverage with a tax credit, penalty is charged on a monthly basis times the number of full-time employees, minus 30.


Annual per employee penalty for large employers if a full-time employee is not offered affordable coverage and enrolls in Marketplace coverage with a tax credit. Penalty is charged on monthly basis only for full-time employees receiving a tax credit.


For employer medical coverage to be considered “affordable”, the employee’s contribution for single coverage in the lowest cost plan can be no more than the ACA affordability percent of 1) Federal Poverty Level, 2) the employee’s rate of pay, or 3) the employee’s W-2 Box 1 income.

Download the 2023 Employee Benefit Plan Limits document to review contribution limit changes that may impact your company and employees. Review the latest updates employers need to know: visit the Compliance Confidence blog.