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.