March 16, 2023
For groups who offer a high-deductible health plan
Each year, total contributions to a health savings account (HSA) may not exceed the annual limits set by the IRS. This is good information to share with your employees who have a qualified high-deductible health plan with an HSA account.
The 2023 limits are:
- Deductible minimum that qualifies for an HSA: $1,500 for individual; $3,000 for family
- Maximum out of pocket: $7,500 for individual; $15,000 for family
- HSA contribution limit: $3,850 for individual; $7,750 for family
- Catch-up contribution for 55+: $1,000 (unchanged from 2022)
Keep in mind, your employee must have a qualified high-deductible health plan to contribute to an HSA.
What's a health savings account?
HSAs allow a person to set money aside for IRS-approved medical expenses. Think of it as a bank account just for healthcare expenses.
What are the benefits of an HSA?
- HSA contributions are tax free.
- A person can use HSA money to pay copays, deductibles, and coinsurance.
- HSA money never expires—even if the person changes jobs, changes health plans, or retires.
- A person can even invest HSA money in a range of mutual funds, stocks, and bonds.
Additional HSA resources to share with your employees:
- HSA-eligible expenses
- HSA preventive drug list
- B’link, your library of employee communications, has content you can share with your employees to help them understand the basics of an HSA. Check out these topics in the Benefits 101 category titled:
- Health savings account – Start your employees out right with their HSA with an easy-to-follow overview.
- What is a Health Savings Account (HSA)? (video) – Help your employees understand the basics of a health savings account.