by Matt Gerard
on October 31, 2022
On October 18, 2022, the IRS issued Revenue Procedure 2022-38 which provides some of the 2023 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of welfare benefit and fringe benefit plans, the most applicable cost-of-living adjustments are listed in the following table:
| Cafeteria Plan Limits and Thresholds | ||||
| Health FSAs | 2023(new) | 2022(old) | ||
| Maximum Health FSA Salary Reductions | $3,050 | $2,850 | ||
| Maximum Health FSA Carryover Amount | $610 | $570 | ||
| Standard Mileage Rate (for travel to obtain medical care) | TBA | $.18/$.22 | ||
| DCAPs | 2023(new) | 2022(old) | ||
| Maximum DCAP Amount | ||||
| Unless Married Filing Separately | $5,000 | $5,000 | ||
| If Married Filing Separately | $2,500 | $2,500 | ||
| Deemed Income of Spouse (Incapable of Self-Care or Full-Time Student) | ||||
| With 1 Qualifying Individual | $250/mo. | $250/mo. | ||
| With 2 or More Qualifying Individuals | $500/mo. | $500/mo. | ||
| Adoption Assistance | 2023 (new) | 2022 (old) | ||
| Maximum Exclusion for Employer-Provided Adoption Assistance | $15,950 | $14,890 | ||
| Adoption Tax Credit Limit | $15,950 | $14,890 | ||
| Maximum Exempt from Phased Reduction of Exclusion | $239,230 | $223,410 | ||
| Maximum Allowable for Exclusion and Credit | $279,230 | $263,410 | ||
| Prohibited Group: Nondiscrimination Tests | 2023 (new) | 2022 (old) | ||
| Highly Compensated Employee Dollar Threshold | $150,000 | $135,000 | ||
| Key Employee Dollar Thresholds | ||||
| Officer Group | $215,000 | $200,000 | ||
| More-Than-1% Owner | $150,000 | $150,000 | ||
| Consumer-Driven Health Care Limits and Thresholds | ||||
| Archer MSAs | 2023 (new) | 2022 (old) | ||
| Contribution Limits – Single | ||||
| Minimum | $1,722.50 | $1,592.50 | ||
| Maximum | $2,567.50 | $2,405.00 | ||
| Contribution Limits – Family | ||||
| Minimum | $3,975 | $3,712.50 | ||
| Maximum | $5,925 | $5,550 | ||
| High Deductible Health Plan Deductible‒Single | ||||
| Minimum | $2,650 | $2,450 | ||
| Maximum | $3,950 | $3,700 | ||
| High Deductible Health Plan Deductible‒Family | ||||
| Minimum | $5,300 | $4,950 | ||
| Maximum | $7,900 | $7,400 | ||
| High Deductible Out-of-Pocket Maximum | ||||
| Single | $5,300 | $4,950 | ||
| Family | $9,650 | $9,050 | ||
| EBHRAs | 2023 (new) | 2022 (old) | ||
| Maximum Newly Available Benefit Amount | $1,950 | $1,800 | ||
| HSAs | 2023 (new) | 2022 (old) | ||
| HDHP Minimum Annual Deductible | ||||
| Self-Only | $1,500 | $1,400 | ||
| Family | $3,000 | $2,800 | ||
| HDHP Out-of-Pocket Maximum | ||||
| Self-Only | $7,500 | $7,050 | ||
| Family | $15,000 | $14,100 | ||
| Maximum Contribution Limit | ||||
| Self-Only | $3,850 | $3,650 | ||
| Family | $7,750 | $7,300 | ||
| Catch-Up Contribution Limit | $1,000 | $1,000 | ||
| QSEHRAs | 2023 (new) | 2022 (old) | ||
| Maximum Reimbursement Allowed | ||||
| Single | $5,850 | $5,450 | ||
| Family | $11,800 | $11,050 | ||
| Fringe Benefit Limits and Thresholds | ||||
| Adoption Assistance | 2023 (new) | 2022 (old) | ||
| Maximum Exclusion for Employer-Provided Adoption Assistance | $15,950 | $14,890 | ||
| Adoption Tax Credit Limit | $15,950 | $14,890 | ||
| Transportation Fringe Benefits | 2023 (new) | 2022 (old) | ||
| Parking | $300/mo. | $280/mo. | ||
| Transit Passes & Vanpooling (combined) | $300/mo. | $280/mo. | ||
Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.
