The IRS has released the 2022 contribution limits for health savings accounts (HSAs), as well as the 2022 minimum deductible and maximum out-of-pocket amounts for high-deductible health plans (HDHPs). An HSA is a tax-advantaged account that’s paired with an HDHP. An HSA offers several valuable tax benefits:
- You may be able to make pre-tax contributions via payroll deduction through your employer, reducing your current income tax.
- If you make contributions on your own using after-tax dollars, they’re deductible from your federal income tax (and perhaps from your state income tax) whether you itemize or not.
- Contributions to your HSA, and any interest or earnings, grow tax deferred.
- Contributions and any earnings you withdraw will be tax-free if used to pay qualified medical expenses.
Here are the key tax numbers for 2021 and 2022.
Health Savings Accounts
|Annual Contribution Limit||2021||2022|
|High-deductible health plan: self-only coverage||2021||2022|
|Annual deductible: minimum||$1,400||$1,400|
|Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed||$7,000||$7,050|
|High-deductible health plan: family coverage||2021||2022|
|Annual deductible: minimum||$2,800||$2,800|
|Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed||$14,00||$14,100|
|Annual catch-up contribution limit for individuals age 55 or older||$1,000||$1,000|