The IRS has issued (Rev. Proc. 2022-24) the inflation-adjusted limits for Health Savings Accounts for 2023. The 2023 amounts, and the comparable amounts for 2022 and 2021:
| 2021 | 2022 | 2023 | |
| HSA Contribution limit: Single plans | $ 3,600 | $ 3,650 | $ 3,850 |
| HSA Contribution limit: Family plans | $ 7,200 | $ 7,300 | $ 7,750 |
| Minimum deductible, Single plans | $ 1,400 | $ 1,400 | $ 1,500 |
| Minimum deductible, Family plans | $ 2,800 | $ 2,800 | $ 3,000 |
| Out-of-pocket cap, Single plans | $ 7,000 | $ 7,050 | $ 7,500 |
| Out-of-pocket cap, Family plans | $ 14,000 | $ 14,100 | $ 15,000 |
Health Savings Accounts are IRA-like accounts designed to accumulate funds for coverage of out-of-pocket health costs. Qualifying contributions generate an "above-the-line" deduction on 1040s, with no phaseouts for high-income filers.
HSAs are often overlooked as a personal financial planning tool. The high deductible can lower health insurance costs for qualifying taxpayers. For higher-income individuals, the combination of an up-front deduction and tax-deferred accumulation of earnings on savings make them a powerful savings vehicle.
To learn more about whether HSAs should be part of your financial planning, contact a member of the Eide Bailly Wealth Planning team or your local Eide Bailly professional.