The IRS has released the 2023 contribution limits for health savings accounts (HSAs) and the 2023 minimum deductible and maximum out-of-pocket amounts for high-deductible health plans (HDHPs). An HSA is a tax-advantaged account that’s paired with an HDHP. An HSA offers several valuable tax benefits:
- You may be able to make pre-tax contributions via payroll deduction through your employer, reducing your current income tax.
- If you make contributions on your own using after-tax dollars, they’re deductible from your federal income tax (and perhaps from your state income tax) whether you itemize or not.
- Contributions to your HSA, and any interest or earnings, grow tax-deferred.
- Contributions and any earnings you withdraw will be tax-free if used to pay qualified medical expenses.
Here are the key tax numbers for 2022 and 2023.
| Health Savings Accounts | 2022 | 2023 |
| Annual contribution limit | ||
| Self-only coverage | $3,650 | $3,850 |
| Family coverage | $7,300 | $7,750 |
| High-deductible health plan: self-only coverage | ||
| Annual deductible: minimum | $1,400 | $1,500 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $7,050 | $7,500 |
| High-deductible health plan: family coverage | ||
| Annual deductible: minimum | $2,800 | $3,000 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $14,100 | $15,000 |
| Catch-up contributions | ||
| Annual catch-up contribution limit for individuals age 55 or older | $1,000 | $1 |
Spectrum Wealth Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Additional information about Spectrum’s investment advisory services is found in Form ADV Part 2, which is available upon request. The information presented is for educational and illustrative purposes only and does not constitute tax, legal, or investment advice. Tax and legal counsel should be engaged before taking any action. The opinions expressed and material provided are for general information and should not be considered a solicitation for purchasing or selling any security.