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).

  1. 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.
  2. 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.
  3. 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.