HSA limits going up

For the super saver's among us, hopefully you are fully taking advantage of your company retirement plan. 2022 limits of $20,500 and $27,000 for those over 50 are likely to soar again in 2023. We tend to find those limits out in late October or early November. For those whose employer offers a high deductible health plan, you have another savings vehicle at your disposal.

The health savings account (HSA) is a supremely tax efficient savings vehicle that allows you to put in money on a tax deferred basis, have it grow tax deferred, and then pull it out tax free if for qualifying expenses. For 2023, that limit has increased to $3,850 for an individual and $7,750 for an individual with family coverage. These sums don't have to be spent and expenditures incurred today can be pulled out of the account in future years with proper documentation. This is yet another wonderful tax preferred vehicle that can be used as a retiree health savings account with years of advanced planning.