The New Revenue Procedures (Rev. Proc. 2022-24)

The IRS has rolled out new revenue procedures (Rev. Proc. 2022-24) which covers the 2023 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under section 223 of the Internal Revenue Code, and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) 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

  1. Annual contribution limitation:  For calendar year 2023, the annual limitation 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 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.
  2. High deductible health plan: For calendar year 2023, a “high deductible healthplan” 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, and for which the annual 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

For plan years beginning in 2023, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA under section 54.9831-1(c)(3)(viii) is $1,950. This is further explained in section 54.9831-1(c)(3)(viii)(B)(1).

Effective date for the new revenue procedure is calendar year 2023 for HSAs, and 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, If you are interested in more information regarding section 223 and HSAs contact William Fischer at (202) 317-5500 (not a toll-free number), and for expected benefit HRAs, contact Christopher Dellana at (202) 317-5500 (not a toll-free number). Also, for further information regarding the calculation of the inflation adjustments in this revenue procedure, contact Mr. Ruane at (202) 317-4718 (not a toll-free number). 

Check Out Our Blog!