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HSA/HDHP Limits Increase for 2023

On April 29, 2022, the IRS released Revenue Procedure 2022-24 to provide the inflation adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023.


The IRS is required to publish these limits by June 1 of each year. These limits include:


• The maximum HSA contribution limit;

• The minimum deductible amount for HDHPs; and

• The maximum out-of-pocket expense limit for HDHPs.


These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs in 2023, up from $3,650 in 2022.


Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs in 2023, up from $7,300 in 2022. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.


The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage in 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage in 2022).


The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage in 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage in 2022).


The IRS also provided the 2023 contribution limit for excepted benefit health reimbursement arrangements (HRAs). For plan years beginning in 2023, the maximum amount that may be made newly available for an excepted benefit HRA is $1,950.


If you are a benefits plan manager that may need assistance with the above, SynchronyHR is here to help. Through our human resources outsourcing (HRO) services, we have HR and employee benefit professionals on hand to help guide you through compliance and benefits administration.


Contact us today to learn more.

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