IRS Announces HSA and HDHP Limits for 2023

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. 

Please contact your AssuredPartners Sales Executive or Account Manager for additional details about how this may affect your 2023 HDHP/HSA offerings. 

 

Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans
	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

 

Additional Links:

• Out-of-Pocket Maximums Announced for 2023