The IRS has released the 2023 contribution limits for health savings accounts (HSAs), as well as the 2023 minimum deductible and maximum out-of-pocket amounts for high-deductible health plans (HDHPs). An HSA is a tax-advantaged account that’s paired with an HDHP. An HSA offers several valuable tax benefits:
- You may be able to make pre-tax contributions via payroll deduction through your employer, reducing your current income tax.
- If you make contributions on your own using after-tax dollars, they’re deductible from your federal income tax (and perhaps from your state income tax) whether you itemize or not.
- Contributions to your HSA, and any interest or earnings, grow tax deferred.
- Contributions and any earnings you withdraw will be tax-free if used to pay qualified medical expenses.
Here are the key tax numbers for 2022 and 2023.
Health Savings Accounts
| Annual Contribution Limit | 2022 | 2023 |
|---|---|---|
| Self-Only Coverage | $3,650 | $3,850 |
| Family Coverage | $7,300 | $7,750 |
| High-Deductible Health Plan: Self Only | 2022 | 2023 |
|---|---|---|
| Annual Deductible: Minimum | $1,400 | $1,500 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed | $7,050 | $7,500 |
| High-Deductible Health Plan: Family Coverage | 2022 | 2023 |
| Annual Deductible: Minimum | $2,800 | $3,000 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed | $14,100 | $15,000 |
| Catch-up Contributions | 2022 | 2023 |
|---|---|---|
| Annual catch-up contribution limit for individuals age 55 or older | $1,000 | $1,000 |
If you have questions or need assistance, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166