In 2023, there are major increases to the HSA or Health Savings Account contribution limits. An HSA or Health Savings Account is a tax-advantaged investment account that can be withdrawn from for qualified medical expenses tax-free. The funds you deposit into an HSA can be invested much like an IRA into equities, bonds, and other investments. HSAs are oftentimes described as “Medical IRAs” due to their tax advantages and investment options. Please keep in mind that if you use your HSA funds for non-qualified medical expenses, the IRS will impose a 20% withdrawal penalty on top of your applicable income tax.
To be eligible to set up and fund an HSA, you must be enrolled in a High Deductible Health Plan or HDHP plan. You can identify a health insurance plan as HSA compatible simply by seeing if there is “HDHP” in the name of the plan such as Bronze 60 HDHP PPO. While the Bronze 60 HDHP PPO is compatible with an HSA, the Bronze 60 PPO is NOT compatible with an HSA.
|HSA Contribution limit
(employer + employee)
|Self: + $200
Family: + $450
|HSA catch up contributions
(age 55 or older)
|HDHP minimum deductibles||Self: $1,400
|Self: + $100
Family: + $200
|HDHP maximum out-of-pocket
(deductibles, co-payments & all except premiums)
If you have any questions about your eligibility for an HSA and if it is right for you, please contact us at 310-909-6135 or at firstname.lastname@example.org for us to better assist you. At Solid Health Insurance Services, we strive to help our clients find the right health, dental, vision, life, and long-term care insurance which best fits their budget and medical needs.