The Internal Revenue Service has raised the annual contribution limit to a health savings account to $3,850 for an individual and $7,750 for a family for the 2023 calendar year.
The current limit is $3,650 for an individual and $7,300 for a family.
HSAs are available only to people with a high deductible health plan, which the IRS defines for 2023 as a plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage. The IRS also says annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) for a high deductible health plan cannot exceed $7,500 for single coverage or $15,000 for family coverage.
HSA assets grew to $98 billion as of Dec. 31, according to Devenir Group LLC, Minneapolis, an HSA researcher and investment provider. Of that amount, $34.4 billion represented investments. The total amount was up 19.2% and the amount invested was up 44.5% from Dec. 31, 2020.
Devenir conducts an annual survey, and the data "largely consisted of top 100 providers in the health savings account market," according to a March 23 Devenir report.
