2023 FSA Limits
Just in time for open enrollment. The IRS has announced that employees can put an extra $200 into their health care flexible spending accounts (health FSAs) next year. The annual contribution limit will increase to $3,050, up from $2,850 in 2022. The dependent care flexible spending account limit will remain at $5,000.
If your employer’s plan permits the carryover of unused health FSA amounts, the maximum carryover amount rises to $610, up from $570.
2023 401(k) Contribution Limits
In addition to increasing FSA limits, the IRS has issued increased 401(k) limits for 2023. Employees may contribute up to $22,500 in 2023 (up from $20,500 in 2022) with plan participants age 50 or older able to contribute an additional $7,500 (up from $6,500 from 2022).
The limit on total employer-plus-employee contributions to defined contribution plans will increase to $66,000 in 2023, up by $5,000 from $61,000 in 2022.