If you’re eligible for health savings account contributions, you can deposit more money starting in 2023, thanks to an inflation adjustment from the IRS.
In 2023, you can save up to $3,850 with an individual health insurance plan, up from $3,650 in 2022, the IRS announced Friday. And you can soon contribute up to $7,750 with a family plan, boosted from $7,300.
To qualify, you’ll need eligible high-deductible health insurance, with an annual deductible of at least $1,500 for self-only coverage or $3,000 for family plans.
If you’re eligible to contribute, health savings accounts may offer a few unique tax benefits.
You can score a so-called “above-the-line” write-off for contributions, lowering your adjusted gross income, regardless of whether you itemize deductions.
There’s also a chance to invest your balance and grow the money tax-free. You can use the money anytime, tax and penalty-free, for eligible medical expenses.
What’s more, there are no “use-it-or-lose-it” rules, meaning your balance can continue growing, and the account is portable if you change jobs.