Tag: health savings account
the IRS announced the new contribution limits which will apply to Health Savings Accounts (HSAs) starting in January of 2023
Health Savings Accounts, or more commonly known as HSAs, are a tax haven hidden in plain sight. HSAs are paired with what the IRS determines to be “High Deductible Health Plans” or HDHPs. For 2021, these plans were required to have a minimum deductible of $1400 for an individual and $2800 for a family. If your plan meets these requirements and is categorized as an HDHP plan, you are eligible to contribute to a HSA. Note that there are more complicated requirements for families with one HDHP and one non-HDHP health plan.
Each year, the IRS specifies contribution limits for retirement accounts. These limits, based on inflation data from the year prior, determine how much a person (and their company in some instances) can contribute to a given plan. Below, we’ll quickly go over the limits for the common retirement accounts.