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IRS Releases 2023 Contribution Limits for Tax-Advantaged Accounts

Financial Services

The IRS has released the 2023 contribution limits for key tax-advantaged – 401(k), 403(b), 457, FSA, HSA, and IRA – accounts.

The new limits, in comparison to last year, are:

Contributions

Limit20232022
401(k), 403(b), 457(b) Plan Deferral Limit$22,500$20,500
401(k), 403(b), Governmental 457(b) Catch-up Limit1$7,500$6,500
Defined Contribution §415 Limit2$66,000$61,000
FSA Limit3$3,050$2,850
Traditional or Roth IRA Limit4$6,500$6,000
Traditional or Roth IRA Catch-up Limit5$1,000$1,000

HSA Contributions

Limit2023
(Individual)
2022
(Individual)
2023
(Family)
2022
(Family)
HSA Contribution Limits$3,850$3,650$7,750$7,300
Minimum Deductible for HDHPs$1,500$1,400$3,000$2,800
Maximum Out-of-Pocket Expenses$7,500$7,050$15,000$14,100

Compensation

Limit20232022
Defined Contribution Limit$330,000$305,000
Defined Benefit Limit$265,000$245,000
Key Employee Officer$215,000$200,000
Highly Compensated Employee$150,000$135,000
Governmental Plan Compensation Limit$490,000$450,000
ESOP §409(o) Limits$1,330,000
$265,000
$1,230,000
$245,000

If you have questions or concerns about how these new limits impact your plan or plan participants, please reach out an M3 Financial consultant to discuss.

1Allowed in year turn 50. Does not include ‘Special’ catch up contributions under some 403(b) and 457 plans
2Total does not include catch up contributions
3Multiple types of FSAs, this assumes coverage of limited purpose FSA. See your employer for details
4Ability to contribute and/or get tax deduction based on individual situation. See your tax advisor for individual advice
5Allowed in year turn 50


Investment advisory services offered through M3 Financial, a registered investment advisor and separate entity from M3 Insurance.

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