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IRS Announces New 2023 Qualified Retirement Plan Limits

The IRS recently announced cost-of-living adjustments for 2023. Below is a list of some of the key annual limits that will apply to qualified retirement plans in 2023:  Compensation limit used in calculating a participant’s benefit accruals: increased to $330,000. Elective deferrals to Code Section 401(k) and 403(b) plans: increased to $22,500. Annual additions to a defined contribution plan: increased to $66,000. Catch-up contributions for employees aged 50 and over to Code Section 401(k) and 403(b) plans: increased to $7,500. Annual benefit limit for a defined benefit plan: increased to $265,000. Compensation dollar limit for defining a “key employee” in a top heavy plan: increased to $215,000. Compensation dollar limit for defining a “highly compensated employee:” increased to $150,000.  The full list of 2023 plan limits included in Notice 2022-55 is available here. 

IRS Releases 2023 Inflation-Adjusted Amounts for HSAs and HDHPs

The IRS recently issued Rev. Proc. 2022-24, which sets the 2023 calendar year limits on (i) annual contributions that can be made to a health savings account (“HSA”) and (ii) annual deductibles and out-of-pocket maximums under a high deductible health plan (“HDHP”). The 2023 limits are as follows: Annual HSA contribution limits: $3,850 for self-only coverage ($200 increase from 2022) and $7,750 for family coverage ($450 increase from 2022); Minimum HDHP deductibles: $1,500 for self-only coverage ($100 increase from 2022) and $3,000 for family coverage ($200 increase from 2022); and HDHP out-of-pocket maximum limits: $7,500 for self-only coverage ($450 increase from 2022) and $15,000 for family coverage ($900 increase from 2022). Rev. Proc. 2022-24 is available here.

HHS Announces Final 2023 Cost-Sharing Maximums under the Affordable Care Act

Last year, HHS issued its final “Notice of Benefit and Payment Parameters for 2022” providing that, beginning with the 2023 benefit year, HHS will publish the maximum annual limit on cost-sharing in guidance issued by January of the year preceding the applicable benefit year, using the most recent National Health Expenditure Accounts income and premium data that is available at the time of publication. HHS recently issued a CMS notice (the “CMS Notice”) providing these annual limits for 2023. The 2023 maximum annual limit on cost sharing is $9,100 for self-only coverage (increased from $8,700 for 2022) and $18,200 for other than self-only coverage (increased from $17,400 for 2022). The CMS Notice is available here. 

New 2022 Health and Welfare Benefits Limits: In Time for Open Enrollment?

The IRS published increased limits for 2022 for various health and welfare benefits, including: Health flexible spending account limit increased to $2,850 (from $2,750); Qualified transportation fringe benefit limit for parking and transit each increased to $280 (from $270); Adoption assistance program limit increased to $14,890 (from $14,400); and Qualified Small Employer Health Reimbursement Arrangement limit increased to $5,450 for individual coverage and $11,050 for family coverage (from $5,300 and $10,700, respectively). An employer that wants to incorporate these increased limits into its plans should determine whether the plans are drafted to automatically reflect the increased limits or whether amendments would be required. If a plan (including a health flexible spending account) is drafted to automatically incorporate any increased limits, the plan sponsor should communicate the increased limits to participants to permit changes during open enrollment for the upcoming plan year. The list of 2022 plan limits can be found in… Continue Reading

IRS Announces 2022 Qualified Retirement Plan Limits

The IRS recently announced cost-of-living adjustments for 2022. Below is a list of some of the key annual limits that will apply to qualified retirement plans in 2022: Compensation limit used in calculating a participant’s benefit accruals: increased to $305,000. Elective deferrals to 401(k) and 403(b) plans: increased to $20,500. Annual additions to a defined contribution plan: increased to $61,000. Catch-up contributions for employees aged 50 and over to 401(k) and 403(b) plans: remains unchanged at $6,500. Annual benefit limit for a defined benefit plan: increased to $245,000. Compensation dollar limit for defining a “key employee” in a top heavy plan: increased to $200,000. Compensation dollar limit for defining a “highly compensated employee”: increased to $135,000. The full list of 2022 plan limits included in Notice 2021-61 is available here.

HHS Announces Final 2022 Cost-Sharing Maximums under the Affordable Care Act

HHS recently issued its final ?Ç£Notice of Benefit and Payment Parameters for 2022?Ç¥ (the ?Ç£Notice?Ç¥), which includes the maximum annual limitations on cost-sharing that will apply to ?Ç£essential health benefits?Ç¥ in 2022 under non-grandfathered group health plans subject to the Affordable Care Act. For this purpose, cost-sharing generally includes deductibles, coinsurance, copayments, and other required expenditures that are qualified medical expenses with respect to essential health benefits available under the plan. The 2022 limitations are (i) $8,700 for self-only coverage and (ii) $17,400 for other than self-only coverage. The Notice is available here.

November 2022
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