IRS Releases 2023 Contribution Limits for Tax-Advantaged Accounts
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
| Limit | 2023 | 2022 |
| 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
| Limit | 2023 (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
| Limit | 2023 | 2022 |
| 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 Global Retirement Partners, LLC, dba M3 Financial, an SEC registered investment advisor.
