Employee Benefit Plan Limits for 2023

Posted By: Amy Wise,
Employee Benefits
Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits:
  • High deductible health plans (HDHPs) and health savings accounts (HSAs);
  • Health flexible spending accounts (FSAs);
  • 401(k) plans; and
  • Transportation fringe benefit plans.
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.
This Compliance Overview includes a chart of the inflation-adjusted limits for 2023. Due to high rates of inflation, all of these limits will substantially increase for 2023. 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.

Increased Limits

  • HSA contributions
  • HDHP limits for minimum deductibles and out-of-pocket maximums
  • Health FSA pre-tax contribution limit
  • Health FSA carryover limit
  • Monthly limits for transportation fringe benefit plans
  • Employees’ elective deferrals to 401(k) plans, pre-tax and Roth
  • Tax exclusion for adoption assistance benefits

Unchanged Limits

The following limits stay the same from year to year because they are not indexed for inflation:
  • Tax exclusion for dependent care FSA benefits
  • Catch-up contributions to an HSA


Limit 2022 2023 Change
HSA Contribution Limit
Self-only $3,650 $3,850 Up $200
Family $7,300 $7,750 Up $450
Catch-up Contribution $1,000 $1,000 No change
HDHP Minimum Deductible
Self-only $1,400 $1,500 Up $100
Family $2,800 $3,000 Up $200
HDHP Out-of-Pocket Maximum
Self-only $7,050 $7.500 Up $450
Family $14,100 $15,000 Up $900
Health FSA
Limit on employees’ pre-tax contributions $2,850 $3,050 Up $200
Carryover limit $570 $610 Up $40
Dependent Care FSA
Tax Exclusion $5,000 ($2,500 if married and filing taxes separately $5,000 ($2,500 if married and filing taxes separately No change
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined) $280 $300 Up $20
Parking $280 $300 Up $20
401(k) Contributions
Employee elective deferrals $20,500 $22,500 Up $2,000
Catch-up contributions $6,500 $7,500 Up $1,000
Limit on total contributions $61,000 $66,000 Up $5,000
Adoption Assistance Benefits
Tax exclusion $14,890 $15,950 Up $1,060