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:
|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.