Tax Update Blog

IRS Issues Health Savings Account (HSA) limits for 2023

April 29, 2022 | Blog
By Bailey Finney

The IRS has issued (Rev. Proc. 2022-24) the inflation-adjusted limits for Health Savings Accounts for 2023. The 2023 amounts, and the comparable amounts for 2022 and 2021:

         2021         2022            2023
HSA Contribution limit: Single plans  $    3,600  $    3,650  $        3,850
HSA Contribution limit: Family plans  $    7,200  $    7,300  $        7,750
       
Minimum deductible, Single plans    $    1,400  $    1,400  $        1,500
Minimum deductible, Family plans  $    2,800  $    2,800  $        3,000
       
Out-of-pocket cap, Single plans  $    7,000  $    7,050  $        7,500
Out-of-pocket cap, Family plans  $  14,000  $  14,100  $      15,000

 

Health Savings Accounts are IRA-like accounts designed to accumulate funds for coverage of out-of-pocket health costs. Qualifying contributions generate an "above-the-line" deduction on 1040s, with no phaseouts for high-income filers.

HSAs are often overlooked as a personal financial planning tool. The high deductible can lower health insurance costs for qualifying taxpayers. For higher-income individuals, the combination of an up-front deduction and tax-deferred accumulation of earnings on savings make them a powerful savings vehicle. 

To learn more about whether HSAs should be part of your financial planning, contact a member of the Eide Bailly Wealth Planning team or your local Eide Bailly professional.

 

 


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