Due to the recent surge in inflation, the Internal Revenue Service (IRS) has announced (via Rev. Proc. 2022-24), inflation-adjusted limits to health savings account (HSA) contributions and high deductible health plans effective for 2023. Adjustments will also be made to the maximum amount that may be made available for excepted-benefit health reimbursement arrangements (HRA’s). These increases are higher than past years.
2023 Health Savings Account (HSA) Contribution Limits
Individual with Self-Only Coverage $3,850 (up from $3,650 in 2022)
Individual with Family Coverage $7,750 (up from $7,300 in 2022)
Those 55 or older will still have the ability to make an additional $1000 “catch up” contribution to their HSA before the end of the tax year. This contribution amount did not change for 2023.
2023 High Deductible Health Plan Limits
Minimum Annual Deductible
Self-Only Coverage $1,500 (up from $1,400 in 2022)
Family Coverage $3,000 (up from $2,800 in 2022)
Limits on Annual Out-Of-Pocket Expenses
(includes deductibles, co-payments and other amounts that are exclusive of premiums)
Self-Only Coverage Not more than $7,500 (up from $7,050 in 2022)
Family Coverage Not more than $15,000 (up from $14,100 in 2022)
Excepted Benefit Heath Reimbursement Account Maximum
$1,950 (up from $1,800 in 2022)
Payroll and plan administration systems should be updated by all plan sponsors for 2023, including cost-of-living adjustments as well as the new limits provided above. They should be shared in all relevant communications shared with participants (open enrollment, collateral, plan documents and summary plan descriptions).
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