Important Plan Limits for 2023
On October 18, 2022, the IRS issued Revenue Procedure 2022-38, which address annual inflation adjustments for more than 60 tax provisions. Included are new limits for Flexible Spending Accounts, Commuter Benefits and various other code provisions, as follows:
Flexible Spending Accounts
- Health Flexible Spending Account - $3,050 (increase of $200)
- Flexible Spending Account Carryover Maximum - $610 (increase of $40)
- Dependent Care Account - $5,000 (no change)
- Adoption Assistance - $15,950 (increase of $1,060)
Commuter Benefit Accounts
- Parking Benefit - $300 (increase of $20)
- Transit Benefit - $300 (increase of $20)
On April 29, 2022, the IRS issued Revenue Procedure 2022-24, providing inflation-adjusted limits related to health savings accounts (HSAs) and high deductible health plans (HDHPs) for calendar year 2023. The following items are included:
Health Savings Accounts
Maximum Contribution Amount
- Individual - $3,850 (increase of $200)
- Family - $7,750 (increase of $450)
- Catch-up (age 55+) - $1,000 (no increase)
High Deductible Health Plan (HDHP) deductible amounts and expense limits for 2023 were also announced:
Annual Maximum Out-of-Pocket Limit for HDHP
- Individual - $7,500 (increase of $450)
- Family - $15,000 (increase of $900)
Annual Minimum Deductible Limit for HDHP
- Individual - $1,500 (increase of $100)
- Family - $3,000 (increase of $200)
Find these and historical qualified benefit plan limits in this handy reference guide.
