Products You May Like
If you’re eligible for health savings account contributions, you can deposit more money starting in 2023, thanks to an inflation adjustment from the IRS.
In 2023, you can save up to $3,850 with an individual health insurance plan, up from $3,650 in 2022, the IRS announced Friday. And you can soon contribute up to $7,750 with a family plan, boosted from $7,300.
To qualify, you’ll need eligible high-deductible health insurance, with an annual deductible of at least $1,500 for self-only coverage or $3,000 for family plans.
More from Personal Finance:
Most adults’ financial priority is nonretirement savings
A simple way to see how inflation erodes your long-term savings
High inflation may prompt people to change summer vacation plans
If you’re eligible to contribute, health savings accounts may offer a few unique tax benefits.
You can score a so-called “above-the-line” write-off for contributions, lowering your adjusted gross income, regardless of whether you itemize deductions.
There’s also a chance to invest your balance and grow the money tax-free. You can use the money anytime, tax and penalty-free, for eligible medical expenses.
What’s more, there are no “use-it-or-lose-it” rules, meaning your balance can continue growing, and the account is portable if you change jobs.