IRS Releases 2023 HSA Contribution Limits
Published on October 17th, 2022
Each year, the IRS updates 1) the minimum annual deductible amount a health plan can have to qualify for a complementary, tax-advantaged health savings account (HSA), 2) the maximum out-of-pocket cost responsibility for the participant, and 3) the HSA contribution limit that an account holder can contribute for the plan year.
The IRS recently announced rising HSA contribution limits for 2023. Self-only HSAs will rise to a contribution limit of $3,850 and family HSAs are rising to $7,750, which are increases of $200 and $450, respectively, from 2022. According to Bloomberg, U.S. consumer prices rose in March by the most since late 1981, underscoring the painfully high cost of living and reinforcing pressure on the Federal Reserve to raise interest rates even more aggressively. This has led to a spike in inflation, with rates increasing higher than they have in 40 years.
The inflation-adjusted increases for 2023 are:
- HSA-Qualified HDHP Self Coverage: Annual deductible must be $1,500 or more in 2023 (up $100 from 2022), and annual out-of-pocket expenses cannot exceed $7,500 (up $450 from 2022)
- HSA Contribution Limit for Self Coverage: Increases to $3,850 in 2023, up $200 from 2022
- HSA-Qualified HDHP Family Coverage: Annual deductible must be $3,000 or more in 2023, up $200 from 2022, and annual out-of-pocket expenses cannot exceed $15,000 (up $900 from 2022)
- HSA Contribution Limit for Family Coverage: Increases to $7,750 in 2023, up $450 from 2022
Alegeus will continue to keep you up-to-date as the IRS releases the cost of living adjustments for other benefit accounts.