Client Alert Applies To: Self-Funded, Fully-Funded, Large Group, and Small Group
In a Revenue Procedure, the IRS has provided the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs), which are as follows:
Annual contribution limitation. For calendar year 2023, the annual contribution limitation for an individual with self-only coverage under an HDHP is $3,850; the amount is $7,750 for an individual with family (and two-party) coverage.
Qualified High Deductible Health Plan minimum deductible. For the calendar year 2023, a QHDHP must have an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $7,500 for self-only coverage or $15,000 for family coverage.
The 2023 HSA limit increased significantly from the 2022 limit (as compared to previous years) due to significant growth in the inflation rate.