healthcare consultation and doctor talking to wom 2023 01 04 20 13 05 utc

Health Savings Accounts: How to Reap Tax Breaks in 2023

It’s the new year. That means that as you’re probably settling into your new routines and trying hard to keep your New Year’s resolutions, you may also be starting to think about what’s next: filing your 2022 taxes. And if you’ve got a Health Savings Account (HSA), that means considering your HSA tax advantages, benefits and things to consider. But first, let’s start with the basics:

What Is An HSA?

An HSA is a tax-deductible health savings account that allows you to grow your contributions tax free. Most HSAs are included with certain medical insurance plans (specifically high deductible plans). You can use your HSA to pay for medical expenses, eye care visits (and glasses), dental bills, medicines, and more. 

If you know you have an expensive medical procedure coming your way soon, it may make sense to contribute to an HSA dependent on your individual situation. Not only will you be able to contribute tax-free, you’ll also be able to receive tax benefits at the end of the year. But as always, there’s a catch: Not everyone can open an HSA and there’s yearly contribution limits . . . more on that later.

Quick FAQs About Your HSA

An HSA may be an ideal way to pay for your yearly medical expenses—tax-free. But if you’ve never had one, it comes with a few questions. Here’s some quick FAQ’s to help you get started: 

Am I Eligible For An HSA?

Anyone with a high deductible health plan is eligible to open an HSA account. You also cannot be claimed as a dependent on anyone else’s taxes. That means, you’re either a head of household filer, single, or married filing jointly. If you’re enrolled in a Medicare plan, you won’t be able to take hold of the HSA tax advantages either. 

Does My Health Plan Offer An HSA? 

It all depends on your specific health plan, but more often than not, an HSA is available for those with high deductible health plans (HDHP). For singles with a high deductible health plan, you have to pay an annual deductible of $1,500 with an out-of-pocket max of $7,050.1 And for families, that number grows to $3,000 and $15,000 respectively.2

How Much Can I Contribute in 2023?

Just like with traditional IRAs and Roth IRAs, there’s a limit to how much you can actually contribute to your HSA. Here’s what you can expect for 2023:

Individuals: $3,850 | Source: 3

Families: $7,750 | Source: 4

If you’re over the age of 55 and want to “catch up” on your contributions, the IRS allows you to make an extra contribution of $1,000 each year.

Are HSA Contributions Tax Deductible?

Absolutely. When you contribute to your HSA through an employer, they fund your account with pre-tax money. That means that any money you spend from your HSA will be tax-free. But if you decide to fund your account after you get paid, you’ll end up putting after-tax dollars in there. But here’s the best part: you can receive tax advantages or deductions when you contribute after-tax dollars. Just be sure to keep track of any contributions and spending throughout the year. 

If you’re wondering how to get the most out of your HSA, including HSA tax advantages, a SageSpring Wealth Advisor is here to help. We can help you determine your eligibility, help you make sure you’re striving to get the most out of your contributions, and see if you’re due any tax deductions from your 2022 HSA spending. Want to learn more? Contact a financial advisor in your area today. 


Investment advisory services offered through SageSpring Wealth Partners, an independent registered investment adviser. SageSpring Wealth Partners is not a registered broker dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Representatives may not be registered to offer securities and advisory services in all states. 

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of SageSpring Wealth Partners and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. 

Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

SHARE THIS ARTICLE
615.861.6100
Jeffrey Dobyns
Jeffrey T. Dobyns

CFP®, CLU, CHFC

President, SageSpring | Financial Advisor, RJFS 
615-861-6102

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.