The IRS has announced cost-of-living increases for participants contributing to Health Flexible Savings Accounts, Health Savings Accounts and retirement plans. Please note the new contribution limits below.
Health Flexible Spending Accounts
The maximum contribution amount has increased to $3,200 and rollover amount is now $640.
403(b) and 457(b) Retirement Plans
The limit is now $23,000 per calendar year. Participants aged 50 and older at any time during the calendar year are permitted to contribute an additional $7,500 for a total of $30,500.
Health Savings Accounts
The new minimum health insurance plan deductible amounts are now $1,600 for individual coverage and $3,200 for families. Annual maximum contribution levels are $4,150 for individuals and $8,300 for family coverage. The catch-up amount allowed for those aged 55 and older remains at $1,000.
Dependent Care Accounts
The contribution limits for Dependent Care Accounts remains unchanged at $5,000 for single taxpayers and married couples filing jointly, and $2,500 for married individuals filing separately.
We strive to keep you updated as regulatory changes are announced so that you succeed in benefits management. If you have questions or need help educating employees on these changes, please contact your First Financial Account Representative.
Additional Resources
- IRS Revenue Procedure 2023-34: Cost-of-living increases for inflation for certain items
- IRS Notice 2023-75: Cost-of-living increases for retirement plans
- IRS Revenue Procedure 2023-23: Inflation adjusted amounts for Health Savings Accounts
