2023 IRS Cost of Living Adjustment Index Released

October 27, 2022
Health Plans

The IRS and other relevant agencies have released the 2023 indexed amounts for various employee benefits. This information comes a little late for employers who are in open enrollment but see our tips here.


What to do if open enrollment has started/finished:


-First review your plan document. If it automatically applies the increased limit, then you may need to give employees who elected the “old” maximum a chance to increase.


-If instead your plan says the limit is what was communicated during open enrollment, you may not need to allow any changes, although you may want to.


-You can allow changes before the plan year begins (but check your cafeteria plan document for any limitations).


-Consider how much time you need to load election changes into payroll.


-Once the plan year begins, elections are locked in.



To adjust elections automatically in the future:


-Make sure your cafeteria plan document automatically applies the updated IRS limit employees that elected the “old” maximum.


-Revise open enrollment materials to say that an election of the “old” maximum will be treated as an election for the maximum, as adjusted by the IRS.


Heather Reynolds, ESQ
CCO - Administrative Officer
FNA Insurance Services, Inc.
516-348-7199 |[email protected]


Michael Bivona

Compliance Paralegal
FNA Insurance Services, Inc.
516-348-7135 |[email protected]