The Internal Revenue Service (IRS) issued Notice 2022-24 on April 29 to provide the inflation-adjusted amounts for health savings accounts (HSAs) in calendar year 2023.
For calendar year 2023, individuals who have self-only coverage under a high-deductible health plan may contribute up to $3,850 on a pre-tax basis. Individuals who have family coverage under a high-deductible health plan may contribute up to $7,750 on a pre-tax basis. The amounts for 2022 were $3,650 and $7,300, respectively.
The IRS also increased the minimum and maximum amounts that a high-deductible health plan may impose as a deductible. For calendar year 2023, the minimum amount that must be imposed as a deductible for self-only coverage under a high-deductible health plan is $1,500. The minimum amount that must be imposed as a deductible for family coverage under a high-deductible health plan is $3,000. The amounts for 2022 were $1,400 and $2,800, respectively.
Finally, the IRS increased the maximum out-of-pocket amounts (i.e., deductibles, co-payments, and other amounts, but not premiums) that may be imposed for self-only and family coverage under a high-deductible health plan. For self-only coverage, the amounts were increased from $7,050 to $7,500. For family coverage, the amounts were increased from $14,100 to $15,000.
HSA catch-up contributions will remain at $1,000 as in previous years.
Planning Tip: Plan sponsors should keep these new inflation-adjusted amounts in mind as they make plan design changes for 2023 and update annual enrollment materials.