Keenan Briefings
Designed to provide information quickly and effectively about issues that matter to you.
Briefing
Updated - 2023 Benefit Limits for Health & Welfare Plans
Every year, the U.S. Government sets new limits for various benefit programs to reflect inflation and changes in the law. Following are the limits announced or projected for 2023. Employers should review their benefit plans to ensure they reflect these new limits.
|
Retirement Plans |
2022 |
2023 |
|
Limits on Benefits and Contributions: - Defined benefit plan, basic limit - Defined contribution plan, basic limit - 401(k) and 403(b) plans, elective deferrals - 457(b) plans, elective deferrals - SIMPLE plans, elective deferrals - Annual compensation limit |
$245,000 $61,000 $20,500 $20,500 $14,000 $305,000 |
$265,000 $66,000 $22,500 $22,500 $15,500 $330,000 |
|
Catch-Up Contributions - 401(k), 403(b) or governmental 457 plans - SIMPLE plans |
$6,500
$3,000 |
$7,500
$3,500 |
|
"Highly Compensated" Definition |
$135,000 |
$150,000 |
|
"Officer" Or "Key Employee" Definition |
$200,000 |
$215,000 |
|
Health Savings Accounts |
2022 |
2023 |
|
Contributions - Individual - Family |
$3,650 $7,300 |
$3,850 $7,750 |
|
Minimum Annual Deductible - Self-Only - Family |
$1,400 $2,800 |
$1,500 $3,000 |
|
Out-of-Pocket Maximums (OOPM) - Self-Only - Family |
$7,050 $14,100 |
$7,500 $15,000 |
|
Post-55 Catch-Up Limit |
$1,000 |
$1,000 |
|
Non-HSA Qualified Plans |
2022 |
2023 |
|
Out-of-Pocket Maximums (OOPM) - Self-Only - Other than self-only coverage |
$8,700 $17,400 |
$9,100 $18,200 |
|
Medicare |
2022 |
2023 |
|
Part A (Hospital Insurance): - Inpatient deductible - Daily Coinsurance, Days 61-90 - Daily Coinsurance, Days 91-150 Lifetime Reserve - Daily Coinsurance, Skilled Nursing Facility 1 |
$1,556 $389 $778
$194.50 |
$1,600 $400 $800
$200 |
|
Part B (Supplementary Medical Insurance): - Monthly premium - Deductible |
$170.10 $217 |
$164.90 $226 |
|
Part D (Prescription Drug Benefit): - Base Part D Premium - Maximum Annual Deductible - Initial Coverage Limit - Annual Out-Of-Pocket Threshold - Minimum Copayment for Costs Above The Annual Out-Of-Pocket Threshold |
$32.08 $480 $4,430 $7,050 $3.95 generic $9.85 other |
$31.50 $505 $4,660 $7,400 $4.15 generic $10.35 other |
|
Medical Savings Accounts |
2022 |
2023 |
|
Individual Deductible Range
Individual Out-Of-Pocket Maximum Family Deductible Range Family Out-Of-Pocket Maximum
|
$2,450 – $3,700 $4,950 $4,950 – $7,400 $9,050 |
$2,650 - $3,950 $5,300 $5,300 - $7,900 $9,650 |
|
Long Term Care Insurance Deductible Premiums |
2022 |
2023 |
|
Age: - 40 or less - 41-50 - 51-60 - 61-70 - Over 70 |
$450 $850 $1,690 $4,510 $5,640 |
$480 $890 $1,790 $4,770 $5,960 |
|
Flexible Spending Accounts |
2022 |
2023 |
|
Dependent Care Medical |
$5,000 $2,850 |
$5,000 $3,050 |
|
Medical FSA Employer Limit |
$570 |
$610 |
|
Qualified Transportation Fringe Benefit |
2022 |
2023 |
|
Parking Transit Pass/ Commuter Vehicle |
$280 $280 |
$300 $300 |
|
Control Employee Definition for Commuting Valuation |
2022 |
2023 |
|
Officer Compensation Employee Compensation |
$120,000 $245,000 |
$130,000 $265,000 |
|
Affordable Care Act (ACA) |
2022 |
2023 |
|
4980H(a) Penalty |
$2,750 |
$2,880 |
|
4980H(b) Penalty |
$4,120 |
$4,320 |
|
FPL Affordability Safe Harbors - FPL for Single individual - Maximum monthly contribution |
2 $12,880 $103.15 |
3 $13,590 $103.28 |
|
Affordability - Affordability threshold under 4980H affordability safe harbors - Affordability threshold for eligibility of premium tax credits |
9.61%
9.61%
|
9.12%
9.12%
|
|
PCORI Fee (per covered life) |
$2.794 |
$3.005 |
Please contact your Keenan Account Manager for questions regarding this Briefing.
1 For days 21-100. Days 1-20 is $0 for each benefit period.
2 Use 2021 poverty guidelines to determine affordability.
3Use 2022 poverty guidelines to determine affordability.
4 For plan years ending on or after October 1, 2021 and before October 1, 2022.
5 For plan years ending on or after October 1, 2022 and before October 1, 2023..
Keenan & Associates is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.
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