IRS Release 2023 Health Savings Account (HSA) and High-Deductible Health Plan (HDHP) Amounts
The IRS recently released Tax procedure 2022-24 which included 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs). The revenue procedure details the maximum HSA contribution limit, the minimum allowable HDHP deductible amount, and the maximum disbursement limit (eg, deductibles, co-payments, and other amounts outside of bonuses) for a compliant HDHP.
The new, higher IRS HSA contribution limit and HDHP disbursement maximum will take effect January 1, 2023. HDHP deductible limits will increase for plan years beginning on or after that date.
The description below shows the 2022 and 2023 limits for personal and family coverage. Also note that the IRS has again elected to retain the same maximum allowable catch-up HSA contribution for eligible individuals age 55 and older.
Maximum CHS contribution
- For individuals, the limits increase from $3,650 (2022) to $3,850 (2023)
- For the family, the ceilings increase from $7,300 (2022) to $7,750 (2023)
HSA maximum catch-up contribution
- For individuals and family, limits will remain the same at $1,000
HSA minimum deductible
- For individuals only, limits increase from $1,400 (2022) to $1,500 (2023)
- For the family, the ceilings increase from $2,800 (2022) to $3,000 (2023)
Maximum HSA out-of-pocket expenses
- For individuals only, limits increase from $7,050 (2022) to $7,500 (2023)
- For the family, the limits increase from $14,100 (2022) to $15,000 (2023)
Finally, the IRS also announced that the maximum amount newly available for 2023 in an Excepted Benefit HRA (EBHRA) is $1,950.
HDHP promoters may wish to make plan design changes for 2023. In addition, employers will need to ensure that they update all plan communications, open enrollment materials, and other materials that address these limits.
We will continue to monitor developments and provide updates as events warrant. Be sure to subscribe to the Fisher Phillips Insight System for the most up-to-date information. If you have any questions, contact your Fisher Phillips attorney, the author of this overview, or any attorney in our Tax Practice and Employee Benefits Group.