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Amid hovering inflation, annual well being financial savings account contribution limits for subsequent yr are growing in one of many greatest jumps lately. For the calendar yr 2023, the well being financial savings account contribution limits for a person with self-only protection will bounce to $3,850—a major $200 improve from $3,650 for this yr, the IRS introduced. Final yr, the quantity climbed simply $50 from $3,600 for 2021. For household protection, the HSA contribution restrict jumps to $7,750 subsequent yr from $7,300 in 2022.
Associated: IRS takes shot at rising inflation with 2023 HSA limits
What it means to HR leaders
With rising healthcare prices and different cost-of-living will increase hitting workers’ pocketbooks onerous, the HSA contribution restrict is welcome information—and alternative for HR and advantages leaders to share constructive information to workers, after scores of unhealthy information from the persevering with pandemic to hovering inflation and social and racial injustice points.
Associated: 5 employer methods to assist with hovering inflation
Though the change in HSA contribution limits doesn’t start till 2023—and are sometimes promoted throughout open enrollment—now is an efficient time for HR and advantages leaders to relay the knowledge to their workers, and maybe encourage them to spice up their contributions.
“It offers a platform for which the employer can discuss [HSAs] or the rest associated to worker advantages and engagement,” says Kevin Robertson, chief income officer at HSA Financial institution, including that employers ought to talk concerning the HSA restrict change each now and through open enrollment. “The reason being as a result of repetition issues. While you say one thing to anyone, they’re not essentially going to alter their plan of action by listening to one thing as soon as. But it surely’s the repetition that helps reinforce these messages.”
Plus, if allowed by their employer, workers can change their well being financial savings account contribution ranges throughout any level within the plan yr, so employees who aren’t taking benefit of the present 2022 limits could also be inclined to take action after employer communication.
Many specialists cite the advantages of HSAs for workers, citing their triple tax advantages.
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