MESSA ABC 1 deductibles, HSA contribution limits increase for 2023

MESSA members with an ABC 1 plan will see their deductibles and the amount they can contribute to their health savings accounts (HSA) increase in 2023.

The IRS announced this year that the minimum deductibles for HSA qualified health plans will increase to $1,500 for individuals and $3,000 for families in 2023.

The IRS also raised the maximum amount individuals can contribute to an HSA for the 2023 calendar year. An individual may contribute up to $3,850 into their HSA, while a person with family coverage will be able to contribute up to $7,750.

People who are 55 and older can contribute an additional $1,000 a year to their own HSA as a catch-up contribution.

Contributing to an HSA has a triple tax benefit, with no taxes being paid on contributions, earnings or payments. HSA funds can be used to pay for qualified medical and prescription costs, including vision and dental expenses.

An HSA is also a terrific way to save for health care expenses into retirement. You own the account forever, with any unspent funds carrying over from year to year and growing tax-free. This makes it a great way to pay for health expenses in retirement.