{"id":13053,"date":"2022-11-07T09:50:11","date_gmt":"2022-11-07T14:50:11","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=13053"},"modified":"2022-11-07T09:50:11","modified_gmt":"2022-11-07T14:50:11","slug":"2023-employee-benefits","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/2023-employee-benefits\/","title":{"rendered":"What are the Employee Benefits Limits for 2023?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13055\" src=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2022\/11\/pexels-mikhail-nilov-8297425.jpg\" alt=\"2023 employee benefits\" width=\"1024\" height=\"683\" srcset=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2022\/11\/pexels-mikhail-nilov-8297425.jpg 1024w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2022\/11\/pexels-mikhail-nilov-8297425-980x654.jpg 980w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2022\/11\/pexels-mikhail-nilov-8297425-480x320.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/>Many employee benefits are subject to annual dollar limits that are <a href=\"https:\/\/www.jdsupra.com\/legalnews\/2023-employee-benefit-plan-limits-3989111\/\" target=\"_blank\" rel=\"noopener\">adjusted for inflation by the IRS<\/a> each year. The following commonly offered employee benefits are subject to these limits:<\/p>\n<ul>\n<li>High deductible health plans (HDHPs) and health savings accounts (HSAs);<\/li>\n<li>Health flexible spending accounts (FSAs);<\/li>\n<li>401(k) plans; and<\/li>\n<li>Transportation fringe benefit plans.<\/li>\n<\/ul>\n<p>The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.<\/p>\n<p>This Compliance Overview includes a chart of the inflation-adjusted limits for 2023. <strong>Due to high rates of inflation, all of these limits will substantially increase for 2023<\/strong>. Note that there are some benefit limits that are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs. <strong>\u00a0<\/strong><\/p>\n<h2>Increased Employee Benefit Limits<\/h2>\n<ul>\n<li>HSA contributions<\/li>\n<li>HDHP limits for minimum deductibles and out-of-pocket maximums<\/li>\n<li>Health FSA pre-tax contribution limit<\/li>\n<li>Health FSA carryover limit<\/li>\n<li>Monthly limits for transportation fringe benefit plans<\/li>\n<li>Employees\u2019 elective deferrals to 401(k) plans, pre-tax and Roth<\/li>\n<li>Tax exclusion for adoption assistance benefits<\/li>\n<\/ul>\n<h2>Unchanged Employee Benefit Limits<\/h2>\n<p>The following limits stay the same from year to year because they are not indexed for inflation:<\/p>\n<ul>\n<li>Tax exclusion for dependent care FSA benefits<\/li>\n<li>Catch-up contributions to an HSA<\/li>\n<\/ul>\n<h2>Employee Benefit Plan Limits for 2023<\/h2>\n<table border=\"1\" width=\"714\">\n<tbody>\n<tr>\n<td width=\"243\"><strong>Limit<\/strong><\/td>\n<td width=\"183\"><strong>2022<\/strong><\/td>\n<td width=\"174\"><strong>2023<\/strong><\/td>\n<td width=\"114\"><strong>Change<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>HSA Contribution Limit<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Self-only<\/strong><\/td>\n<td width=\"183\">$3,650<\/td>\n<td width=\"174\">$3,850<\/td>\n<td width=\"114\"><strong>Up $200<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Family<\/strong><\/td>\n<td width=\"183\">$7,300<\/td>\n<td width=\"174\">$7,750<\/td>\n<td width=\"114\"><strong>Up $450<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Catch-up contributions*<\/strong><\/td>\n<td width=\"183\">$1,000<\/td>\n<td width=\"174\">$1,000<\/td>\n<td width=\"114\">No change<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>HDHP Minimum Deductible<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Self-only<\/strong><\/td>\n<td width=\"183\">$1,400<\/td>\n<td width=\"174\">$1,500<\/td>\n<td width=\"114\"><strong>Up $100<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Family<\/strong><\/td>\n<td width=\"183\">$2,800<\/td>\n<td width=\"174\">$3,000<\/td>\n<td width=\"114\"><strong>Up $200<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>HDHP Out-of-Pocket Maximum<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Self-only<\/strong><\/td>\n<td width=\"183\">$7,050<\/td>\n<td width=\"174\">$7,500<\/td>\n<td width=\"114\"><strong>Up $450<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Family<\/strong><\/td>\n<td width=\"183\">$14,100<\/td>\n<td width=\"174\">$15,000<\/td>\n<td width=\"114\"><strong>Up $900<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>Health FSA<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Limit on employees\u2019 pre-tax contributions<\/strong><\/td>\n<td width=\"183\">$2,850<\/td>\n<td width=\"174\">$3,050<\/td>\n<td width=\"114\"><strong>Up $200<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Carryover limit<\/strong><\/td>\n<td width=\"183\">$570<\/td>\n<td width=\"174\">$610<\/td>\n<td width=\"114\"><strong>Up $40<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>Dependent Care FSA*<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Tax exclusion<\/strong><\/td>\n<td width=\"183\">$5,000 ($2,500 if married and filing taxes separately)<\/td>\n<td width=\"174\">$5,000 ($2,500 if married and filing taxes separately)<\/td>\n<td width=\"114\">No change<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>Transportation Fringe Benefits (Monthly Limits) <\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Transit pass and vanpooling<br \/>\n(combined)<\/strong><\/td>\n<td width=\"183\">$280<\/td>\n<td width=\"174\">$300<\/td>\n<td width=\"114\"><strong>Up $20<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Parking<\/strong><\/td>\n<td width=\"183\">$280<\/td>\n<td width=\"174\">$300<\/td>\n<td width=\"114\"><strong>Up $20<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>401(k) Contributions<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Employee elective deferrals<\/strong><\/td>\n<td width=\"183\">$20,500<\/td>\n<td width=\"174\">$22,500<\/td>\n<td width=\"114\"><strong>Up $2,000<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Catch-up contributions<\/strong><\/td>\n<td width=\"183\">$6,500<\/td>\n<td width=\"174\">$7,500<\/td>\n<td width=\"114\"><strong>Up $1,000<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Limit on total contributions<\/strong><\/td>\n<td width=\"183\">$61,000<\/td>\n<td width=\"174\">$66,000<\/td>\n<td width=\"114\"><strong>Up $5,000<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"714\">\n<p style=\"text-align: center;\"><strong>Adoption Assistance Benefits<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\"><strong>Tax exclusion<\/strong><\/td>\n<td width=\"183\">$14,890<\/td>\n<td width=\"174\">$15,950<\/td>\n<td width=\"114\"><strong>Up $1,060<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*<em>Limits that are not adjusted for inflation<\/em><\/p>\n<p><em>\u00a92022 Zywave, Inc. All rights reserved.<\/em><\/p>\n<h2>GTM Can Help You Manage Your 2023 Employee Benefits<\/h2>\n<p>Benefits enrollment can be a sore spot for HR and benefit managers. Filling out election forms and manual data entry tends to take a lot of time. But with <a href=\"https:\/\/gtm.com\/business\/what-we-offer\/human-capital-management\/\">isolved<\/a>, our payroll and HR platform, benefits enrollment has never been easier. Our HCM benefits administration capabilities make planning and decision-making easier for your employees. Set up your benefit plans once, driving enrollment and deductions throughout the system. Plus our solution offers powerful tools that provide you with reliable reporting, robust analytics, and customizable workflows. <a href=\"https:\/\/gtm.com\/business\/get-a-quote\/\">Request a free quote<\/a> to learn more.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>These are the commonly offered employee benefits that are subject to increased limits for 2023.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[232],"tags":[310,172,20],"post_folder":[],"class_list":["post-13053","post","type-post","status-publish","format-standard","hentry","category-gtm-biz-blog-isolved","tag-2023-employee-benefits","tag-benefits-administration","tag-employee-benefits"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/13053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=13053"}],"version-history":[{"count":4,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/13053\/revisions"}],"predecessor-version":[{"id":13058,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/13053\/revisions\/13058"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=13053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=13053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=13053"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=13053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}