Heath Savings Accounts (HSA)
HSA Guidelines
Each year, the IRS establishes current guidelines for HSA-qualified policies. These numbers are subject to change from year to year due to inflationary factors. The guidelines listed below are for the current tax year.
Maximum HSA Account Contribution Levels:
| 2022 | 2023 | |
|---|---|---|
| Single Plan |
$3,650 |
$3,850 |
|
Family Plan |
$7,300
|
$7,750 |
CAUTION: Not every policy with a high deductible is
HSA-qualified--even if it appears to fall within the ranges outlined above. Most people who currently have a high deductible policy will need to apply for a new, properly-qualifed high deductible
policy in order to be eligible to participate in an HSA plan. Typically, a high deductible policy underwritten by major insurers will clearly be labeled as HSA-qualified if it is properly
qualified.
Money withdrawn for non-medical reasons is subject to income tax in addition to a 10% penalty, similar to other IRA accounts. If you become disabled or reach age 65 the penalty no longer exists but you still have to pay income tax on the money.
For more information regarding HSA guidelines, please visit IRS.gov.
Important: Money that is not used during a calendar year in your HSA account rolls over to the following year, so this means your account balance can grow over time. Therefore if you are already making the maximum IRA or 401k contributions an HSA is another way to make a tax deductible contribution and allow the money to grow tax deferred, even if you don't necessarily need it to cover medical expenses.
*All such information is based on general interpretations of the tax and legal provisions referred to, and should not be construed as specific legal or tax advice or guidance of any kind. Application to specific circumstances may vary. Please consult your tax advisor for more information.
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