Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Compliance April 29, 2022
IRS Sets Higher 2023 HSA Limits as Inflation Grows
An individual with self-only coverage under a high-deductible health plan can direct a new limit of $3,850 into their health savings account—$200 more than the 2022 cap.
Reported by DJ Shaw
The IRS has published the 2023 contribution limits for health savings accounts.
With the latest update of the U.S. Consumer Price Index showing a sizeable spike in the inflation rate to 8.5%—the largest 12-month increase since 1981—the new IRS limits represent a larger hike than seen in recent years.
For calendar year 2023, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,850, up $200 from this year’s limit. The annual limitation on deductions for an individual with family coverage under an HDHP is $7,750, an increase of $450 from the 2022 limit.
The limit for individuals was only increased by $50 going into 2022 from 2021, and by $100 for families.
The IRS defines an HDHP for calendar year 2023 as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and for which annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.