Recently, the IRS released Rev. Proc. 2022-24, which outlines the adjusted amounts for health saving accounts (HSAs) and high deductible health plans (HDHPs) for the 2023 calendar year. The new limits are summarized in the table below.
|Annual HSA Contribution Limit |
(employer and employee)
|Self-only: $3,850 |
|Self-only: $3,650 |
|Self-only: +$200 |
|HSA Catch-Up Contributions|
(age 55 or older)
|Minimum Annual HDHP Deductible||Self-only: $1,500 Family: $3,000||Self-only: $1,400 Family: $2,800||Self-only: +$100 Family: +$200|
|Maximum Out-of-Pocket for HDHP (deductibles, co-pays & other amounts except premiums)||Self-only: $7,500 Family: $15,000||Self-only: $7,050 Family: $14,100||Self-only: +$450 Family: +$900|
As a reminder, for an HDHP to be qualified for purposes of HSA-eligibility, it must not pay benefits (other than for preventative care) before the minimum required deductible is met for the level of coverage in which enrolled. Importantly, plans that provide family coverage with an embedded deductible* must not pay benefits until the minimum required family deductible of $3,000 is met. This means that plans with an embedded deductible must have a self-only deductible that is at least the $3,000 minimum family deductible.
Next Steps for Employers
As employers prepare for the 2023 plan year, they should ensure any plan materials and participant communications reflect the new limits. In addition, with the increase in the minimum annual deductible, employers should make sure their qualified HDHPs meet the new deductible requirements.
*An embedded deductible allows the plan to pay coinsurance for an individual on family coverage once that individual hits the single deductible limit (and once family deductible is met, coinsurance kicks in for all covered family members).
Disclaimer: This content is intended for informational purposes only and should not be construed as legal, medical or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Please note that this information may be subject to change based on legislative changes. © 2022 Sequoia Benefits & Insurance Services, LLC. All Rights Reserved