The IRS, in Revenue Procedure 2022-24, has announced increased minimums and limits related to Health Savings Account (HSAs) for the 2023 calendar year.  The increases are higher than those in recent years.  Here is what employers and employees need to know:

• In 2023, the total limit on contributions to an HSA (both employer and employee) will be $3,850 for self-only coverage (up from $3,650 in 2022).
• The same limit on HSA contributions for family coverage in 2023 will be $7,750 (up from $7,300 in 2022).
• The additional catch-up contribution for individuals aged 55 and older will remain $1,000.
• The minimum deductible of an employer-sponsored “high deductible health plan” (HDHP), with which an HSA must be paired, will be $1,500 for self-only coverage, and $3,000 for family coverage.
• The annual out-of-pocket maximum for a high deductible health plan in 2023 will be $7,500 for self-only coverage, and $15,000 for family coverage.

Additional limits in other areas of employee benefits are expected to be announced by the IRS later in the year.

If you have questions, please contact a member of Carmody’s Labor & Employment group.

This information is for educational purposes only to provide general information and a general understanding of the law. It does not constitute legal advice and does not establish any attorney-client relationship.