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 Coverage | Family 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 Deductible | Out-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 |
Eligibility
To be eligible to qualify for an HSA, you must meet the following requirements:
- You have a High Deductible Health Plan (HDHP) on the first day of the month (see deductible ranges above).
- You have no other health coverage except what is permitted. See the “Other Health Coverage” section in IRS Publication 969.
- You are not enrolled in Medicare.
- You cannot be claimed as a dependent on someone else’s tax return.
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.
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