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||2022||2023|
|Annual contribution limit|
|High-deductible health plan: self-only coverage|
|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|
|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|
|Annual catch-up contribution limit for individuals age 55 or older||$1,000||$1,000|