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HSA/HDHP Limits Increase for 2023
On April 29, 2022, 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 each year.
These limits include:
· The maximum HSA contribution limit;
· The minimum deductible amount for HDHPs; and
· The maximum out-of-pocket expense limit for HDHPs.
These limits vary based on whether an individual has self-only or family coverage under an HDHP.
Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022).
Action Steps
Employers that sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.
HSA/HDHP Limits
The following chart shows the HSA and HDHP limits for 2023 as compared to 2022. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.
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Type of Limit
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2022
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2023
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Change
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HSA Contribution Limit
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Self-only
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$3,650
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$3,850
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Up $200
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HSA Contribution Limit
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Family
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$7,300
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$7,750
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Up $450
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HSA Catch-up Contributions(not subject to adjustment for inflation)
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Age 55 or older
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$1,000
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$1,000
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No change
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HDHP Minimum Deductible
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Self-only
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$1,400
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$1,500
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Up $100
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HDHP Minimum Deductible
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Family
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$2,800
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$3,000
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Up $200
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HDHP Maximum Out-of-pocket Expense Limit(deductibles, copayments and other amounts, but not premiums)
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Self-only
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$7,050
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$7,500
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Up $450
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HDHP Maximum Out-of-pocket Expense Limit(deductibles, copayments and other amounts, but not premiums)
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Family
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$14,100
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$15,000
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Up $900
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