Each year around this time the IRS announces the inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs), as they are required to do so annually prior to June 1st. On April 29, 2022, the IRS released Revenue Procedure 2022-24.
Rev. Proc. 2022-24 addresses the following:
- The maximum HSA contribution limit;
- The minimum deductible amount for HDHPs; and
- The maximum out-of-pocket expense limit for HDHPs.
The categorical limits noted above will of course differ depending on whether an individual has self-only or family coverage under an HDHP. The adjusted limits will go into effect as of January 1, 2023. Plan years beginning before that date use the 2022 HSA limits. Individuals are eligible to make contributions toward an HSA if they are enrolled in a qualifying HDHP and do not have other, disqualifying, first-dollar coverage (E.g., generally, please see IRS Publication 969).
For 2023, eligible individuals with self-only HDHP coverage may contribute up to $3,850 to their HSAs over the course of the year. This is an increase from 2022’s $3,650 maximum contribution amount. Those with family coverage under an HDHP will be permitted to contribute up to $7,750 to their HSAs in 2022, an increase from 2022’s $7,300 maximum contribution limit.
For 2023, the minimum deductible amount for HDHPs will increase to$1,500 for individual coverage and $3,000 for family coverage. Although, the HDHP maximum amount for annual out-of-pocket expenses (the amount that an individual is required to pay) will rise to $7,500 for self-only coverage and to $15,000 for family coverage, up from $7,050 and $14,100 from 2022, respectively.
There is no change to the age 55+ HSA catch-up limit rules for 2023. That value remains at $1,000 per year and will continue to allow individuals age 55 or older to put away an additional “catch-up” contribution up to that amount annually.
| Contribution & Out-of-Pocket Limits for HSAs and HDHPs | |||
|---|---|---|---|
| 2023 | 2022 | Change | |
| HSA Contribution Limit (Employer + Employee) | Self-Only: $3,850 Family: $7,750 | Self-Only: $3,650 Family: $7,300 | Self-Only: +$200 Family: +$450 |
| HSA Catch-Up Contributions (Age 55+) | $1,000 | $1,000 | No Change |
| HDHP Minimum Deductibles | Self-Only: $1,500 Family: $3,000 | Self-Only: $1,400 Family: $2,800 | Self-Only: +$100 Family: +$200 |
| HDHP Maximum Out-of-Pocket Amounts (Deductibles, Co-payments and other amounts, but not Premiums) | Self-Only: $7,500 Family: $15,000 | Self-Only: $7,050 Family: $14,100 | Self-Only: +$450 Family: +$900 |
Related Resources
This blog post was originally posted by AssuredPartners and written by Nathanael M. Alexander, Esq. Pierce Group Benefits is a part of the AssuredPartners family of companies.