New IRS Regulations for 2023

The IRS has recently released updated regulations regarding the contribution and plan limits for retirement plans and cafeteria plans for 2023. The new regulations allow for ample opportunity to save more.

The retirement plan limits and thresholds for 2023 are as follows:

Annual Compensation Limit: $330,000 (up from $305,000 in 2022)

Total Defined Contribution Plan Limit: $66,000 (up from $61,000 in 2022)

401(k)/Roth Employee Deferral Limit: $22,500 (up from $20,500 in 2022)

401(k)/Roth Catch-up Contribution Limit (age 50+): $7,500 (up from $6,500 in 2022)

SIMPLE 401(k) Employee Deferral Limit: $15,500 (up from $14,000 in 2022)

SIMPLE 401(k) Catch-up Contribution Limit (age 50+): $3,500 (up from $3,000 in 2022)

IRA (Traditional and Roth) Contribution Limit: $6,500 (up from $6,000 in 2022)

IRA Catch-up Contribution Limit: $1,000 (unchanged from 2022)

SEP Minimum Compensation: $750 (up from $650 in 2022)

SEP Maximum Compensation: $330,000 (up from $305,000 in 2022)

SEP Maximum Contribution: $66,000 (up from $61,000 in 2022)

The cafeteria plan limits and thresholds for 2023 are as follows:

Health FSA Contribution Limit: $3,050 (up from $2,850 in 2022)

Health FSA Carryover Limit: $610 (up from $570 in 2022)

Dependent Care FSA Max Election: $5,000 (unchanged from 2022)

HSA Max Contribution Limit - Individual: $3,850 (up from $3,650 in 2022)

HSA Max Contribution Limit - Family: $7,750 (up from $7,300 in 2022)

HSA Catch-Up Contribution Limit (age 55+): $1,000 (unchanged from 2022)

The IRS also raised the social security taxable wage base to $160,200 (up from $147,000 in 2022).