IRS Announces 2023 HSA Limits

The IRS has announced the health savings account (HSA) limits for 2023. The announcement came in IRS Revenue Procedure 2022-24. 

HSA Limits

For calendar year 2023, the annual limitation on deductions under Internal Revenue Code Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,850. And for calendar year 2023, the annual limitation on deductions under Code Section 223(b)(2)(B) for an individual with family coverage under an HDHP is $7,750.

HDHP Limits

For calendar year 2023, a “high deductible health plan” is defined under Code Section 223(c)(2)(A) as a health plan:

• with an annual deductible that is not less than $1,500 for self-only coverage;
• with an annual deductible that is not less than $3,000 for family coverage;
• for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,500 for self-only coverage; or 
• for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $15,000 for family coverage.

Trends

The 2023 limits mark a continued increase in the limits for self-only and family coverage under an HDHP.