Summary of 2023 Inflation Adjusted Amounts:
This revenue procedure announces the 2023 inflation-adjusted limits for Health Savings Accounts (HSAs) and the maximum available amount for excepted benefit Health Reimbursement Arrangements (HRAs).
- For calendar year 2023, the annual HSA deduction limit is:
- $3,850 for individuals with self-only coverage under a high deductible health plan.
- $7,750 for individuals with family coverage under a high deductible health plan.
- A high deductible health plan in 2023 must have:
- Minimum annual deductible of $1,500 (self-only) or $3,000 (family).
- Maximum annual out-of-pocket expenses (excluding premiums) of $7,500 (self-only) or $15,000 (family).
- For plan years beginning in 2023, the maximum newly available amount for an excepted benefit HRA is $1,950.
- This revenue procedure applies to HSAs for the 2023 calendar year and excepted benefit HRAs for plan years starting in 2023.
Details below:
Rev. Proc. 2022-24
SECTION 1. PURPOSE
This revenue procedure provides the 2023 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under § 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.
SECTION 2. 2023 INFLATION ADJUSTED ITEMS
.01 HSA INFLATION ADJUSTED ITEMS
Annual contribution limitation. For calendar year 2023, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,850. For calendar year 2023, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,750.
High deductible health plan. For calendar year 2023, a “high deductible healthplan” is defined under § 223(c)(2)(A) 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 the 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.
.02 HRA INFLATION ADJUSTED ITEM
For plan years beginning in 2023, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA under § 54.9831-1(c)(3)(viii) is $1,950. See § 54.9831-1(c)(3)(viii)(B)(1) for further explanation of this calculation.
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for HSAs for calendar year 2023 and for excepted benefit HRAs for plan years beginning in 2023.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is Bill Ruane of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding § 223 and HSAs contact William Fischer at (202) 317-5500 (not a toll-free number). For further information regarding excepted benefit HRAs, contact Christopher Dellana at (202) 317-5500 (not a toll-free number). For further information regarding the calculation of the inflation adjustments in this revenue procedure, contact Mr. Ruane at (202) 317-4718 (not a toll-free number).
https://www.irs.gov/pub/irs-drop/rp-22-24.pdf
