Payroll Briefs

IRS Issues New 2023 HSA Limits

May 26, 2022

The Internal Revenue Service (IRS) recently released its 2023 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for high deductible health plans (HDHPs) that must be used in tandem with HSAs. The IRS also announced the maximum amount that can be made newly available for excepted benefit health reimbursement arrangements (HRAs). DM Payroll Solutions highlights these new amounts for 2023 so you can be prepared for employees’ increased contributions.  

Out-of-Pocket Spending for HSA-Compatible HDHPs

The maximum annual out-of-pocket amount for HDHP self-only coverage is $7,500 (up from $7,050 in 2022) and the maximum annual out-of-pocket amount for HDHP family coverage is double that at $15,000 (up from $14,100 in 2022).

Deductible Minimums for HSA-Compatible HDHPs

The minimum deductible for HDHPs is $1,500 (up from $1,400 in 2022) for self-only coverage and $3,000 for family coverage (up from $2,800 in 2022). If a fiscal year plan satisfies the requirements for an HDHP on the first day of the first month of its fiscal year, the deductible may be applied for the full fiscal year.

Benefit HRAs

The maximum amount that may be made available for an excepted benefit HRA is $1,950 (up from $1,800 in 2022).

Applying the Increases

With these new increases to HSA limits, employees are sure to benefit from increased flexibility. However, when it comes to updating employee HSA contribution amounts, how efficient is your benefits process?

Contact DM Payroll Solutions today to learn how to effectively administer and manage these new HSA limits for your workforce using our integrated benefits administration and payroll software.