The IRS has published the 2023 contribution limits for health savings accounts.
With the latest update of the U.S. Consumer Price Index showing a sizeable spike in the inflation rate to 8.5%—the largest 12-month increase since 1981—the new IRS limits represent a larger hike than seen in recent years.
The information was released in IRS Rev. Proc. 2022-24.
For calendar year 2023, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan (HDHP) is $3,850, up $200 from the 2022 limit. The annual limitation on deductions for an individual with family coverage under an HDHP is $7,750, an increase of $450 from the 2022 limit.
The limit for individuals was only increased by $50 going into 2022 from 2021, and by $100 for families.
The IRS defines an HDHP for calendar year 2023 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 for which annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.