Health savings accounts 2023: Contribution limits, eligibility updates

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8 uncommon ways you can use your HSA account

Here’s how your health savings account can be used for more than emergency room visits.


Healthcare is a major expense for a lot of people during their working years. And often, it becomes an even more burdensome expense during retirement.

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That’s why it’s so important to set funds aside for future healthcare costs. And health savings accounts (HSAs) are a great bet in that regard.

HSAs allow you to set aside money for near- and long-term medical costs. Unlike flexible spending accounts (FSAs), HSA funds never expire, which is why HSAs are often regarded as a retirement-savings tool – even though you can access money in one of these accounts well ahead of retirement.

What makes HSAs so unique is that they’re triple tax-advantaged. Contributions are made with tax-free dollars, and money that isn’t withdrawn from an HSA can be invested for added growth. Those gains are then tax-free, as are withdrawals, provided they’re used for qualified medical expenses.

Like IRAs and 401(k) plans, the annual contribution limits for HSAs can change based on factors such as inflation. And come 2023, HSA savers will get the option to contribute more money to their accounts.

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HSA limits are rising

The amount of money you can contribute to an HSA depends on whether you’re saving as an individual or at the family level. If you have self-only coverage, you can currently contribute $3,650 to an HSA. Come 2023, that limit will increase to $3,850.

If you have family-level coverage, you can currently contribute $7,300 to an HSA. Come 2023, that limit will rise to $7,750.

It’s also worth noting that savers 55 and over are eligible for a $1,000 catch-up HSA contribution on top of the aforementioned figures. These are similar to the catch-up contributions older savers can make in IRAs or 401(k)s.

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Eligibility is changing, too

Not everyone is able to fund an HSA. To be eligible, you must be enrolled in a high-deductible health insurance plan. And the definition of that is changing in 2023, as well.

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