20223 HSA Limits announced

The IRS has announced the 2023 HSA contribution limits. The annual limit on HSA contributions for self-only coverage will be $3,850, an increase of $200 from the 2022 limit of $3,650. The annual contribution limit for family coverage will rise to $7,750 for 2023, a $450 increase from 2022. This represents a 5.5% increase, compared to a 1.4% rise from 2021 to 2022. The annual catch-up contribution for individuals aged 55 and over remains unchanged at $1,000.

Employees should consider these limits when planning their 2023 open enrollment changes and elections. Employers may also adjust contribution or match amounts for the 2023 benefit year in response to the increased limits.