HSA Amounts Increase for 2023
The IRS recently issued Rev. Proc. 2022-24, announcing that the maximum contribution to a health savings account (HSA) and certain associated amounts will be higher in 2023 due to inflation-related adjustments. In addition, the revenue procedure includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements (HRAs) under Regs. Sec. 54.9831-1(c)(3)(viii).
For calendar year 2023, the maximum HSA contribution that may be made by an individual with self-only coverage under a high-deductible health plan (HDHP) will be $3,850. This amount is a $200 increase from 2022. For an individual with family coverage under a HDHP, the maximum will be $7,750, which is a $450 increase from 2022. Individuals who are age 55 or older may make a $1,000 "catch-up" contribution before the end of the tax year.
The minimum annual deductible amount and maximum out-of-pocket amounts of HDHPs are also adjusted for inflation for 2023. A qualifying HDHP must have an annual deductible of at least $1,500 for self-only coverage or $3,000 for family coverage, increases of $100 and $200, respectively. Annual out-of-pocket expenses, including deductibles, co-payments and other amounts, excluding premiums, may not be more than $7,500 for self-only coverage or $15,000 for family coverage. These amounts are increases of $450 and $900, respectively.
For plan years beginning in 2023, the maximum amount that may be made newly available for an excepted-benefit HRA under Regs. Sec. 54.9831-1(c)(3)(viii) is $1,950, a $150 increase from 2022.