HSA Contribution Limits – IRS Announces 2023 HSA Limits

HSA contribution limits

On April 29, the Internal Revenue Service (IRS) published 2023 HSA contribution limits, out-of-pocket limits, and High Deductible Health Plan (HDHP) minimum deductibles in Rev. Proc. 2022-24.

HSA Contribution Limits

An important part of consumer-directed healthcare (CDH), HSAs offer participants enrolled in HSA-qualified (HDHP) health plans a way to save on taxes while setting aside money for out-of-pocket healthcare expenses for themselves and their families.

For 2023, Health Savings Account (HSA) owners will be able to contribute significantly more to their accounts. For those with self-only coverage, the annual limit will be $3,850, an increase of $200. HSA owners with family coverage will be able to contribute up to $7,750, a $450 increase.

Annual Changes in HSA Contribution Limits

Self-Only CoverageFamily Coverage
2023 HSA Contribution Limits$3,850 (+ $200)$7,750 (+ $450)
2022 HSA Contribution Limits$3,650 (+$50)$7,300 (+$100)
2021 HSA Contribution Limits$3,600 (+$50)$7,200(+$200)
2020 HSA Contribution Limits$3,550 (+$50)$7,100 (+$200)
2019 HSA Contribution Limits$3,500$6,900

Catch-Up Contributions

As in prior years, HSA account owners aged 55 and older may contribute an additional $1,000 over the standard annual limit. For 2023, that means account owners with individual coverage may contribute $4,850, whereas those with family coverage may contribute $8,750. Those turning 55 are eligible to begin their catch-up contributions at the start of the year they turn 55; they do not have to wait until the actual date of birth.

HDHP Minimum Deductibles and Out-of-Pocket Limits

For the calendar year 2023, an HSA-qualified health plan must have a minimum annual deductible of $1,500 for self-only coverage and $3,000 for family coverage. The annual maximum out-of-pocket will be capped at $7,500 for self-only coverage and $15,000 for family coverage.

HDHP Minimum Deductibles and Out-of-Pocket Limits

HSA-Qualified (HDHP) Minimum DeductibleOut-of-Pocket Limits
2023$1,500 for single coverage (+$100)
$3,000 for family coverage (+$200)
$7,500 for single coverage (+$450)
$15,000 for family coverage (+$900)
2022$1,400 for single coverage
$2,800 for family coverage
$7,050 for single coverage
$14,100 for family coverage
2021$1,400 for single coverage
$2,800 for family coverage
$7,000 for single coverage
$14,000 for family coverage

Important Notes

  • HSA funds may be used for a long list of eligible healthcare expenses, now also including over-the-counter (OTC) medications, menstrual care, and personal protective equipment.
  • An HSA is owned by the participant (not by the employer), who may keep and use the funds for life, regardless of employment status.
  • An account owner may fund their HSA from a personal IRA (traditional or Roth) only once in their lifetime, and that contribution counts toward that year’s annual limit.
  • If married spouses have self-only coverage, they may only contribute up to the self-only maximum.
  • HSAs earn tax-free interest and tax-free investment income. These do not count toward the annual contribution limit.
  • HSA account owners have until the tax deadline for a specific calendar year (usually on or around April 15) to make contributions that count toward that year.

DataPath Summit features all-in-one HSA administration functionality, including account management, banking, and investments.

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