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
Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
