HSA Contribution Limits Go Up in 2023

If you have a Health Savings Account (HSA), there’s good news and there’s bad news for next year. The good news—in 2023 you’ll be able to contribute more than you have in the past. The bad news—the higher contribution limits are because of the highest inflation rate in more than 4 decades.


In 2023, an individual will be able to contribute up to $3,850, up from $3,650 this year. Those with a family plan will be able to contribute $7,750 in 2023 vs. $7,300 this year. The Society for Human Resource Management (SHRM) says that’s a year-over-year increase of about 5.5% which is substantially higher than the 1.4% increase between 2021 and 2022. But the increase is still well below the current rate of inflation, which is running at a 41-year high of 8.5%.


To qualify for an HSA plan in 2023, you must have eligible high-deductible health insurance with an annual deductible of at least $1,500 for self-only coverage, or $3,000 for family plans. Those deductibles are up from $1,400 and $2,800, respectively, in 2022.


For employers, the 2023 limits can be used during open enrollment to encourage workers to start contributing to their accounts or to raise their current contribution rates. It’s hoped that the higher limits might also serve as an incentive for employers who don’t already contribute to employees’ HSAs to begin doing so. Employer contributions increase employee participation.


HSAs allow pre-tax contributions, lowering adjusted gross income. The contributions can be invested, growing tax free. The money can be withdrawn from the HSA, tax-free and penalty-free to pay for qualified medical expenses.

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