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Template: HR Reminder for Team to Update HSA Contributions

Template: HR Reminder for Team to Update HSA Contributions

Each year, the IRS announces new maximum contribution limits for health savings accounts (HSA). Use this HR communication template to prepare your employees for the new year by updating their HSA contributions accordingly.

 

What Is a Health Savings Account (HSA)?

A health savings account (HSA) is a personal bank account with significant tax advantages that can be used by an individual to pay for qualified medical expenses, typically on high-deductible health insurance plans. 

People with HSAs need to be enrolled in a compatible, high-deductible health plan (HDHP) to properly utilize their benefits. They can then use the money from their HSAs for qualified medical expenses, which can be determined by reviewing the HDHP. 

 

2023 HSA Contribution Limits

The IRS released 2022-2024 cost-of-living adjusted limits for HSAs and HDHPs due to expected inflation in 2023. These new contribution caps include:

  2022 2023

Individual Contribution Limit

$3,650 $3,850
Family Contribution Limit $7,300 $7,750
Catch-up Contribution Limit (for those over the age of 55) $1,000 $1,000
Max Individual out-of-pocket $7,050 $7,500
Max Family out-of-pocket $14,100 $15,000


Template: HSA Contributions Update Communication 

Use the following template to remind employees about the updated HSA caps and how they can make adjustments to their contributions: 

Team,

Each year, the IRS announces contribution limits for numerous tax provisions and healthcare savings accounts. Sometimes, the IRS makes adjustments to account for inflation and changes in the cost of living. 

For 2023, some contribution limits were slightly increased for health savings accounts (HSA). See the chart below for reference:

 

2022

2023

Individual Contribution Limit

$3,650

$3,850

Family Contribution Limit

$7,300

$7,750

Catch-up Contribution Limit (for those over age of 55)

$1,000

$1,000

Max Individual Out-of-Pocket

$7,050

$7,500

Max Family Out-of-Pocket

$14,100

$15,000

Employees who want to update their contribution amount can contact [contact information] or make adjustments to your elections using [name of HRIS].

If you have any questions about HSA contributions or other benefits, please contact [contact information].

Thank you,

[name

 

Additional Resources

You can also stay informed, educated, and up-to-date with unions and other important topics by using BerniePortal’s comprehensive resources:

  • BernieU—free online HR courses, approved for SHRM and HRCI recertification credit

  • BerniePortal Blog—a one-stop-shop for HR industry news

  • HR Glossary—featuring the most common HR terms, acronyms, and compliance

  • HR Guides—essential pillars covering an extensive list of comprehensive HR topics

  • HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics 

BernieU Course The Ultimate Guide to Benefits Administration and Open Enrollment

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