May 2022 Employee Benefits Compliance Alert
Release Date: May 10, 2022
IRS Announces 2023 Health Savings Account and Excepted Benefit Health Reimbursement Limits
The IRS announced in Revenue Procedure 2022-24 the 2023 inflation adjusted amounts for Health Savings Accounts (HSAs) and the maximum amount that may be made newly available for excepted benefit Health Reimbursement Arrangements (HRAs).
- HSA Inflation Adjusted Items: Annual contribution limit
For calendar year 2023, the annual limit on deductions for an individual with self-only coverage under a high deductible health plan is $3,850. For calendar year 2023, the annual limit on deductions 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 health plan” is defined 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.
- 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 is $1,950.
Effective Date: This revenue procedure is effective for HSAs for calendar year 2023 and for excepted benefit HRAs for plan years beginning in 2023.
Note: This alert constitutes compliance advice from the Fred C. Church Agency as your employee benefits broker and does not establish an attorney-client relationship with the recipient, who is free to consult with legal or tax counsel of their own choosing.