The IRS has released the 2023 key tax numbers for health savings accounts (HSAs) and high-deductible health plans (HDHPs).
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 | ||
| Self-only coverage | $3,650 | $3,850 |
| Family coverage | $7,300 | $7,750 |
| 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 |
| Catch-up contributions | ||
| Annual catch-up contribution limit for individuals age 55 or older | $1,000 | $1,000 |
| IMPORTANT DISCLOSURES Dightman Capital does not provide tax or legal recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. This communication is strictly intended for individuals residing in the state(s) of CA, KS, MO, TX and WA. No offers may be made or accepted from any resident outside the specific states referenced. |
| Prepared by Broadridge Advisor Solutions Copyright 2022. |
