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IRS Releases 2023 Health Savings Account (HSA) Limits

The IRS has announced the 2023 inflation-adjusted amounts for health savings accounts (HSAs) as determined under the Internal Revenue Code.

For 2023, the annual limit on HSA contributions for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,850, up from $3,650 for 2022. The annual limit on HSA contributions for an individual with family coverage under an HDHP is $7,750, up from $7,300 for 2022.

For plan years beginning in 2023, an HDHP is defined as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and annual out-of-pocket expenses including deductibles, co-payments, and other amounts, except premiums that do not exceed $7,500 for self-only coverage or $15,000 for family coverage.

Next Steps for Employers

Employers offering a company sponsored HSA should ensure that the updated limits are communicated in any enrollment materials provided to eligible plan participants. Employers who maintain an HSA policy in their employee handbook should also ensure that the updated dollar amounts are reflected in that policy for 2023.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.