Health Savings Account cost-of-living adjustments for 2023
The Internal Revenue Service announced in Revenue Procedure 2022-24 the annual cost-of-living adjustments for Health Savings Account (HSA) contribution limits for calendar year 2023.
These limits apply to qualifying High-Deductible Health Plan (HDHP) deductibles and out-of-pocket maximums. Plan sponsors should verify that their administrative and payroll systems reflect the appropriate limits.
| HSA limits | 2023 | 2022 |
|---|---|---|
| Limit on HSA contributions* — single coverage | $3,850 |
$3,650 |
| Limit on HSA contributions* — family coverage |
$7,750 |
$7,300 |
| HDHP required minimum deductible — single coverage |
$1,500 |
$1,400 |
| HDHP required minimum deductible — family coverage |
$3,000 |
$2,800 |
| HDHP out-of-pocket maximum — single coverage |
$7,500 |
$7,050 |
| HDHP out-of-pocket maximum — family coverage |
$15,000 |
$14,100 |
| HSA catch-up contribution |
$1,000 |
$1,000 |
*The above figures do not include the catch-up contribution limit, which is $1,000 for participants age 55 or older. Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
HSA eligibility
Individuals who participate in an HDHP are permitted a deduction for contributions to HSAs set up to help pay the medical expenses of the participant, spouse and/or dependents.
To be eligible to contribute to an HSA, individuals must participate in an HDHP, which is defined as a health plan with an annual deductible that is not less than the minimum deductibles noted above and for which the annual out-of-pocket expenses — including deductibles, co-payments and other amounts, but excluding premiums — does not exceed the out-of-pocket maximum annually.
In addition, individuals may not receive benefits from other health plans that would be construed as impermissible coverage, such as a general-purpose health flexible spending account, certain prescription drug benefits, etc.
The limits noted above are subject to an inflation adjustment each year.
For a helpful HSA summary, click here.
If you have any questions, or for more information about the 2023 HSA cost-of-living adjustments, we encourage you to contact our team at HCM@wipfli.com.
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