Healthcare Savings Accounts have updated its limits for 2023 — here’s what you need to know:

Healthcare Savings Accounts have updated its limits for 2023 — here’s what you need to know:

Healthcare is a major expense for many individuals and families, especially during working years, and it can become even more of an expense as those approach retirement. This is why we find it so important to set funds aside for future healthcare costs (if you’re in the position to do so), and a health savings account is a great solution!

What to know about Health Savings Accounts

HSAs allow you to set aside money for near and long-term medical costs. Unlike Flexible Spending Accounts, HSA funds never expire, which is why they are often coined as a retirement-savings tool — but remember that you can access money in one of these accounts well ahead of your retirement.

What makes HSAs so unique is that they are triple tax-advantaged, meaning contributions are made with tax-free dollars, and money that isn’t withdrawn from an HSA can be invested for added growth. Those gains are then tax-free, as are the withdrawals, provided that they are used for qualified medical expenses.

Like IRAs and 401k plans, the annual contributions limits for HSAs can changed based on factors like inflation, and as we approach 2023, HSA savers will have the option to contribute even more money to their accounts. 

HSA contribution limits are rising in 2023

For those that utilize health savings accounts (HSA) you will want to know that the IRS has announced its 2023 minimum deductibles, out-of-pocket limits, and contribution limits for 2023 for both single and family coverage.

The amount of money you can contribute to an HSA depends on whether you’re saving as an individual or at the family level. A minimum deductible for a single person in 2023 is now $1,500 using a health savings account. That’s $100 more than in 2022. For a family, that number jumps by $200 in 2023 from $2,800 to $3,000.

Out of pocket limits though will also increase $450 from $7,050 to $7,500 in 2023 for individuals and up $900 from $14,100 to $15,000 for families. In addition, contribution limits will also be increasing in 2023. For singles, this number will increase by $200 from $3,650 to $3,850. For families that number jumps $450 from $7,300 to $7,750.

Remember, the great benefits about Healthcare Savings Accounts is that you can use the money for any medical or dental expenses tax free and if you don’t use the funds, they roll over and accrue.

Our agents here at Florida Healthcare Insurance offer you the best HSA-qualified plans that work with your HSA accounts. Looking for more information and/or a quote? Give us a call at (954) 282-6891 today!

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