IRS 2023 Plan Maximums and Limits
The IRS released the 2023 annual limits for HSAs and HDHPs in Revenue Procedure 2022-24 in May 2022. See below for the 2023 numbers along with comparisons to 2022. We will update this page as the IRS releases more 2023 maximums and limits throughout the year.
An Important Note About Application of 2022 Health Care FSA Carryover Limits
Many employers opted to allow unlimited carryover for Health Care FSAs under the COVID-19 relief contained in the CAA. If adopted by an employer, the relief allowed unlimited Health Care FSA carryovers (1) from the FSA plan year ending in 2020 to the plan year ending in 2021 and/or (2) from the FSA plan year ending in 2021 to the plan year ending in 2022. As a reminder, the IRS FSA maximum carryover limits are back in place for the plan year ending in 2022 (and going forward). The maximum Health Care FSA carryover from the plan year beginning in 2022 to the plan year beginning in 2023 is $570. Employees with significant Health Care FSA balances will want to take care to use their FSA dollars so as not to forfeit unused balances in excess of $570 under the carryover rules.
Cafeteria Plans:
| 2022 | 2023 | |
| Health FSA Maximum: | $2,850 | $3,050 |
| Health FSA Carryover Maximum: | $570 | $610 |
| Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (unless married filing separately): | $5,000 | $5,000 |
| Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (if married filing separately): | $2,500 | $2,500 |
| Medical mileage rate to obtain medical care (reimbursable by a Health FSA): | 1/1/22-6/30/22: $0.18 7/1/22-12/31/22: $0.22 |
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| Compensation amount for determining Highly Compensated Employee: | $135,000 | |
| Compensation amount for determining Key Employee (officers/owners earning over): | $200,000 |
Health Savings Accounts (HSAs):
| 2022 | 2023 | |
| Minimum annual HDHP deductible – Single: | $1,400 | $1,500 |
| Minimum annual HDHP deductible – Family: | $2,800 | $3,000 |
| Annual HSA Contribution Limit – Single: | $3,650 | $3,850 |
| Annual HSA Contribution Limit – Family: | $7,300 | $7,750 |
| Plan Out-of-Pocket Max for HSA Eligibility – Single: | $7,050 | $7,500 |
| Plan Out-of-Pocket Max for HSA Eligibility – Family: | $14,100 | $15,000 |
| Annual HSA Contribution Limit – Age 55+ catch-up: | $1,000 | $1,000 |
Affordable Care Act (ACA):
| 2022 | 2023 | |
| Plan Out-of-Pocket Max for ACA Compliance – Individual: | $8,700 | $9,100 |
| Plan Out-of-Pocket Max for ACA Compliance – Family: | $17,400 | $18,200 |
| ACA Affordability Percentage: | 9.61% | 9.12% |
Transportation Fringe Benefits (per month):
| 2022 | 2023 | |
| Parking: | $280 | $300 |
| Transit Passes & Vanpooling: | $280 | $300 |
For more information or questions regarding how the limits impact your plan, feel free to contact us.