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.

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.

Links and Resources

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

For more important compliance information, contact us.