2023 Health Savings Account Deductible Changes

With 2023 fast approaching, the IRS (Internal Revenue Service) has recently announced that, due to inflation, contributions to your HSA (Health Savings Account) will be adjusted. Contribution limits are tracked, gathered and are included from a variety of medical sources from the calendar year (example 2022). These changes go into effect beginning January 1, 2023.

The contributions made to your HSA are used to pay for any of the account holder’s (spouse or other dependents included) current or future medical expenses. To qualify for an HSA, policy holder’s must be covered by a High Deductible Health Plan (HDHP), with no other health insurance (exceptions include disability, vision, dental, accident, and long term care). Deductibles and co-payments only qualify if they are not reimbursable by any other source, including insurance, and do not qualify for a federal income tax return (medical expense deduction).

The contributions for 2023 have increased for the following:

Maximum Contribution – HSA:

Self Only: $3,650 (2022) to $3,850 (2023)

Family: $7,300 (2022) to $7,750 (2023)

Maximum Catch-Up Contribution – HSA (55 & older):

Self & Family: These limits are to remain the same ($1,000)

Minimum Deductible – HSA:

Self Only: $1,400 (2022) to $1,500 (2023)

Family: $2,800 (2022) to $3,000 (2023)

Out-of-Pocket Expense – HSA (Maximum):

Self Only: $7,050 (2022) to $7,500 (2023)
Family: $14,100 (2022) to $15,000 (2023)

The IRS has also announced that the newly available maximum amount in an EBHRA (Excepted Benefit HRA) for 2023 will be $1,950. Please see the full IRS 2023 HSA announcement (https://www.irs.gov/pub/irs-drop/rp-22-24.pdf) to learn more.

For questions regarding anything that has been mentioned, or any other questions you may have regarding taxes, medical expense deductions, or any other possible deductions you may be eligible for, please contact our tax professionals at Perfect Balance located in Mount Pleasant, Wisconsin.