Hello everyone! Recently, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of every year.
Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 (up $200 from last year) to their HSAs for 2023, whereas individuals with family HDHP coverage will be able to contribute $7,750 (up $450). Individuals aged 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs for 2023 as well.
The minimum deductible amount for HDHPs increased to $1,500 (up $100) for self-only coverage and $3,000 (up $200) for family coverage, which is up from the $1,400 and $2,800 from last year. The HDHP maximum out-of-pocket expense limit increased to $7,500 (up $450) for self-only and $15,000 (up $900) for family as well.
Any employers that sponsor HDHPs should review their plan’s minimum deductibles and maximum out-of-pocket expense limits when preparing for the plan year beginning 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits. We hope everyone has a good rest of their week!