For the 2023 calendar year, the Internal Revenue Service (IRS) raised the contribution limit to a health savings account (HSA) to $3,850 for an individual and $7,750 for a family. Currently, the HSA limit is $3,650 for individuals and $7,300 for a family. These higher limits allow individuals and families to save more money on qualified expenses.
An HSA is a savings account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses. With an HSA, you can use untaxed dollars to pay for deductibles, co-payments, and coinsurance which may lower your health care costs. HSAs are available only to individuals with a high deductible health plan (HDHP) which the IRS defines as a plan with an annual deductible that is no less than $1,500 for self-only coverage or $3,000 for family coverages for 2023. It also articulated that annual out-of-pocket expenses including deductibles and co-payments for an HDHP cannot exceed $7,500 for individuals and $15,000 for family coverage.
There will be no change to the age 55+ HSA catch-up limit rules for 2023 so it remains at $1,000 per year. This allows any individual ages 55 and older to put away an additional “catch-up” contribution up to that amount annually. All adjusted limits will go into effect starting January 1, 2023.
GMS Is Here To Help!
Are you a business owner that doesn’t offer any health care benefits, but you think now might be a good time to introduce them? You’ve come to the right place. We understand that health coverage can be confusing. At GMS, our team of experts sits with your employees to explain the different health coverages available to them and determine the right fit. Learn more!