The Internal Revenue Service (IRS) released Revenue Procedure 2022-24, announcing the 2023 inflation-adjusted limits for Health Savings Accounts (HSA) and High-Deductible Health Plans (HDHP). These limit adjustments are announced annually in June. Other employee benefits plan limits [Flexible Spending Accounts (FSA), Transportation Fringe Benefit, Qualified Small Employer Health Reimbursement Arrangements (QSEHRA) and Dependent Care FSA Accounts (DCAP)] are announced annually in the Fall.
| Type of Limit | 2022 | 2023 | Change | |
| HSA Contribution Limit | Self-only | $3,650 | $3,850 | Up $200 |
| HSA Contribution Limit | Family | $7,300 | $7,750 | Up $450 |
| HSA Catch-up Contributions (not subject to adjustment for inflation) | Age 55 or older | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | Self-only | $1,400 | $1,500 | Up $100 |
| HDHP Minimum Deductible | Family | $2,800 | $3,000 | Up $200 |
| HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) | Self-only | $7,050 | $7,500 | Up $450 |
| HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) | Family | $14,100 | $15,000 | Up $900 |
Action May be Required
Employers sponsoring these plans should ensure they use the new limits for their 2023 plan year. These new limits must be reflected in the 2023 plan documents and benefits enrollment materials. Be sure the updated Summary of Benefits and Coverage (SBC), which is required pursuant to the Affordable Care Act, is updated and provided 60 days prior to the beginning of the plan year, where possible. At a minimum at enrollment time. Employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits before or at the time of enrollment.
This information is educational only, and not intended to be legal or financial advice. Please consult with your own legal professional to ensure compliance with all applicable law.
Permission is granted to reprint this bulletin, as long as you credit The Leavitt Group/LGAA, Inc with authorship. This bulletin is general in nature and is not intended or provided as legal advice or opinion in any particular case. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matter(s) addressed herein.
Recent Comments