There are a handful of HSA limitations and requirements that you need to worry about, though. They're adjusted each year for inflation. They apply to the amount you can contribute to an HSA for the year, the minimum deductible for your health insurance plan, and your annual out-of-pocket expenses. If you or your health plan don't comply with the restrictions, then you'll lose the HSA tax savings for that year.
For 2022, the annual contribution limit for self-only coverage increases from $3,600 to $3,650. If you have family coverage, the limit jumps from $7,200 to $7,300 next year. If you're 55 or older at the end of 2022, you can put in an extra $1,000 in "catch up" contributions (that's the same amount allowed in 2021).
You also must be covered under a high deductible health plan to participate in an HSA. For 2022, the health plan must have a deductible of at least $1,400 for self-only coverage or $2,800 for family coverage. Those minimums are the same as the ones in place for 2021.
The out-of-pocket medical expenses that you're required to pay under the health plan have limits, too. For 2022, the out-of-pocket limit for self-only coverage will go from $7,000 to $7,050. For family coverage, the increase will be from $14,000 to $14,100.
If you have questions about your HSA limitations and/or requirements, please call the CAS team at ELO CPAs & Advisors for more information. Find the office nearest you or call (605) 996-7717 for assistance.