The IRS just announced the Health Savings Accounts contribution limits (and eligibility limits) for 2023.
Because of the high inflation we're experiencing right now, the annual increases for next year are larger than what we typically see each year. For 2023, the annual contribution limit for self-only coverage increases from $3,650 to $3,850. If you have family coverage, the limit jumps from $7,300 to $7,750 next year. If you're 55 or older at the end of 2023, you can put in an extra $1,000 in "catch up" contributions (that's the same amount allowed in 2022).
You also must be covered under a high deductible health plan to participate in an HSA. For 2023, the health plan must have a deductible of at least $1,500 for self-only coverage or $3,000 for family coverage. Those minimums were $1,400 and $2,800, respectively, for 2021.
The out-of-pocket medical expenses that you're required to pay under the health plan have limits, too. For 2023, the out-of-pocket limit for self-only coverage will go from $7,050 to $7,500. For family coverage, the increase will be from $14,100 to $15,000.
We are big fans of Health Savings Accounts and would be delighted to discuss with you (perhaps during open enrollment this fall) the possible benefits to you of switching to an HSA-compatible health plan and how you can maximize your tax deduction and tax free investment opportunities.
Hopefully, if you have an HSA, you are keeping the money in your account and not using it right now. Save this money for retirement and watch your tax free money grow by investing it (if your HSA has this option). If your HSA doesn't have an investment option, let's find one for you that does. We manage several clients HSA funds at TD Ameritrade.