Subscribe to our newsletter for safe money retirement tips and updates.

Search

HSA Limits And Requirements 2023

Health savings accounts (HSAs) are a tax-advantaged way for many people to pay for medical expenses. Contributions to an HSA are eligible for an “above-the-line” deduction. Your employer’s money put into an HSA is excluded from gross income, profits are tax-free, and payouts are tax-free if used to cover qualified medical expenditures. You can also keep the account after leaving your current employment and use it tax-free for medical costs at another job or even during retirement. Overall, HSAs can be a valuable tool for paying for medical expenses. However, there are a few restrictions and regulations to be aware of, which are modified for inflation each year. They impact the amount you can put into an HSA for the year, your health insurance plan’s minimal deductible, and your annual out-of-pocket spending. If you or your health plan does not comply with the restrictions in force for any given year, you will lose your HSA tax savings for that year. HSA Contributions Are Capped Each Year. If you have self-only coverage, you’ll be able to contribute up to $3,650 in 2022 or up to $7,300 if you have family coverage. You can contribute an extra $1,000 in “catch up” payments if you’re 55 or older at the end of the year. However, your contribution maximum is lowered by the amount of any deductible contributions made by your employer, including the contributions to your account through a cafeteria plan. You can still contribute to an HSA for 2022 until April 18, 2023. The table below depicts how contributions limitations have risen in recent years (and for 2023 HSAs). YearSelf-Only CoverageFamily CoverageCatch-Up Contributions2023$3,850$7,750$1,0002022$3,650$7,300$1,0002021$3,600$7,200$1,0002020$3,550$7,100$1,0002019$3,500$7,000$1,0002018$3,450$6,900$1,0002017$3,400$6,750$1,000 Enrollment in a high-deductible health plan is required to contribute to an HSA. A deductible of $1,400 or more for self-only coverage or $2,800 for family coverage is necessary for 2022. The minimum deductible amounts for the six most recent years are shown below (plus for 2023). YearSelf-Only CoverageFamily CoverageCatch-Up Contributions2023$3,850$7,750$1,0002022$3,650$7,300$1,0002021$3,600$7,200$1,0002020$3,550$7,100$1,0002019$3,500$7,000$1,0002018$3,450$6,900$1,0002017$3,400$6,750$1,000 You must also be limited in your out-of-pocket medical payments under the health plan. Deductibles, copayments, and other out-of-pocket costs are included, but premiums are not. The out-of-pocket limit for self-only coverage in 2022 is $7,050 for self-only coverage and $14,100 for family coverage. According to the IRS, only deductibles and expenses for services within the health plan’s network should be utilized to determine if the limit applies.
Contact Information:
Email: [email protected]
Phone: 3037587400

Get the FREE E-Book

E-Book Title Here

The Certified Safe Money advantage includes access to valuable resources to help you make the right decisions for your retirement goals – because we believe knowledge is power. Browse our current e-books below and prepare yourself for the future.

The Certified Safe Money advantage includes access to valuable resources to help

Get the FREE E-Book

At Certified Safe Money, we empower you with valuable resources to make informed decisions for your retirement goals. We believe knowledge is the key to unlocking a secure future. Explore our current e-books and equip yourself with the insights you need to plan for the retirement you deserve.

At Certified Safe Money, we empower you with valuable resources to make informed decisions for

Are you a Safe Money or Retirement expert? Apply for a free listing!

Are you a Safe Money or Retirement expert? Apply for a free listing!

Find The Most Credible,
Highest-Rated Safe Money Advisors

If You Are Nearing Retirement Or Already Retired, Finding The Right Financial Advisor Who Fits Your Needs Doesn’t Have To Be Complicated.

Our Free Tool Matches You With The Highest-Rated Financial Advisors In Your Area.

About the CDK User

Todd Carmack

Financial Advisor / Fiduciary

I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and

Annuities 101: Everything You Need to Know About Retirement Income Key Takeaways: Annuities provide a reliable source of guaranteed income, tax-deferred growth, and protection from

Key Takeaways: Understanding your Full Retirement Age (FRA) is crucial when it comes to working and collecting Social Security benefits without penalties. The earnings-test limits

Key Takeaways: Not all annuities have traditional fees; some, like SPIAs, MYGAs, fixed, and fixed indexed annuities, offer clear paths to secure retirement income without

Subscribe to receive Safe Money retirement tips and updates.

Subscribe to receive Safe Money retirement tips and updates.

This field is for validation purposes and should be left unchanged.

Enter your Information to Download Your E-Book

Apply for a free listing

If you're a Licensed Agent and a stellar record for delivering exceptional customer service, we invite you to apply for a free listing.

"*" indicates required fields

Checkbox*
This field is for validation purposes and should be left unchanged.