The IRS, CMS and Social Security Administration have released 2023 inflation adjustments for several benefit-related provisions, including those impacting retirement plans, health savings accounts, health flexible spending arrangements, Social Security and Medicare. The table below includes the updated limits. These limits potentially impact design, administration, communication and tax reporting for the related benefit plans.
Indexed statutory limits
| 2022 | 2023 | |
|---|---|---|
| Retirement plans | ||
| Maximum recognizable compensation | $305,000 | $330,000 |
| Highly compensated breakpoint | $135,000 | $150,000 |
| §415 defined benefit limit | $245,000 | $265,000 |
| §415 defined contribution limit | $61,000 | $66,000 |
| Limit on pre-tax elective deferrals: Under age 50 Age 50 and over |
$20,500 $27,000 |
$22,500 $30,000 |
| Health savings accounts (HSAs) | ||
| Individual HDHP coverage: Maximum annual HSA contribution Minimum annual HDHP deductible Maximum annual HDHP out-of-pocket expenses |
$3,650 $1,400 $7,050 |
$3,850 $1,500 $7,500 |
| Family HDHP coverage: Maximum annual HSA contribution Minimum annual HDHP deductible Maximum annual HDHP out-of-pocket expenses |
$7,300 $2,800 $14,100 |
$7,750 $3,000 $15,000 |
| Catch-up contributions* | $1,000 | $1,000 |
| Health flexible spending arrangements (FSAs) | ||
| Salary reduction contribution limit | $2,850 | $3,050 |
*These contributions are for individuals age 55 and older, prior to Medicare enrollment.
Social Security
| 2022 | 2023 | |
|---|---|---|
| Income replacement | ||
| FICA: Wage base Tax rate |
$147,000 6.2% |
$160,200 6.2% |
| Primary insurance amount: CPI adjustment Maximum annual benefit at SSRA |
5.9% $40,140 |
8.7% $43,524 |
| Annual retirement earnings limit: Years before SSRA Year of SSRA After SSRA |
$19,560 $51,960 none |
$21,240 $56,520 none |
| Medicare | ||
| FICA: Wage base Tax rate1 |
no limit 1.45% |
no limit 1.45% |
| Deductibles: Part A Part B Part D limit |
$1,556 $233 $480 |
$1,600 $226 $505 |
| Part A coinsurance: Days 1 – 60 Days 61 – 90 Lifetime reserve days |
$0 $389 $778 |
$0 $400 $800 |
| Part B coinsurance | 20% | 20% |
| Monthly Part B premium2 | $170.103 | $164.90 |
| Monthly Part D base beneficiary premium2 | $33.37 | $32.74 |
1 Higher-income individuals pay additional 0.9% on compensation above certain
limits.
2 Higher-income individuals pay more. Certain Medicare enrollees who received
a kidney transplant can pay special premium to continue immunosuppressive
drugs.
3 A “hold harmless” provision limits Part B premiums for some enrollees to a lesser
amount.
Download
| Title | File Type | File Size |
|---|---|---|
| 2023 Benefit basics for pension and health and welfare plans | MB |
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