The IRS has rolled out new revenue procedures (Rev. Proc. 2022-24) that cover the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under section 223 of the Internal Revenue Code. Additionally, the maximum amount for a newly available excepted benefit HRA is covered in Rev. Proc. 2022-24. This amount is provided under section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.
In the new adjusted plan, all adjusted items will be as follows;
HSA INFLATION-ADJUSTED ITEMS
- Annual contribution limitation: For the calendar year 2023, the annual limit on deductions under section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,850. For the calendar year 2023, the annual limitation on deductions under section 223(b)(2)(B) for an individual with family coverage under a high-deductible health plan is $7,750.
- High deductible health plan: For the calendar year 2023, a “high deductible health plan” is defined under section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage. Additionally, the yearly out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.
HRA INFLATION-ADJUSTED ITEM
The maximum amount for a newly available excepted benefit HRA for 2023 is $1,950. This amount applies to plan years beginning in 2023. It is specified under section 54.9831-1(c)(3)(viii). This is further explained in section 54.9831-1(c)(3)(viii)(B)(1).
The effective date for the new revenue procedure is the calendar year 2023 for HSAs. As well as for excepted benefit HRAs for plan years beginning in 2023.
The principal author of this revenue procedure is Bill Ruane of the Office of Associate Chief Counsel (Income Tax & Accounting). However, to learn more about section 223 and HSAs, contact William Fischer at (202) 317-5500 (not a toll-free number). For expected benefit HRAs, contact Christopher Dellana at (202) 317-5500 (not a toll-free number). Also, contact Mr. Ruane at (202) 317-4718 (not a toll-free number) for calculating the inflation adjustments in this revenue procedure.
