IRS Announces BIG CHANGES To Retirement Accounts
(ConservativeInsider.org) – Planning for retirement is often a tricky business, as it’s difficult to figure out how much to save for the future when inflation is already stretching pocketbooks thin. In an effort to encourage saving for retirement and the medical costs associated with aging, the Internal Revenue Service (IRS) just upped the amount people can contribute to their Health Savings Accounts (HSA).
On Friday, May 29, the IRS announced its new contribution limits for 2023. For those who have HSA accounts, self-only coverage individuals can put $3,850 into their accounts, while families can contribute up to $7,750. These went up by $200 and $450, respectively, from the previous year.
The Human Resources Executive magazine shared more about this news on Twitter:
— Human Resource Executive (@HRExecMag) May 3, 2022
The IRS has acknowledged the intense inflation facing Americans right now with this 5.5% limit increase, even though it’s not keeping up with the current 8.5% inflation the country is experiencing. However, HSA contributions are not subject to federal income tax, so these contributions can actually make tax time less painful if you are able to spare a little bit of money now.
Hopefully, in the long run, this new, higher limit will encourage citizens to budget for medical costs and retirement so they are not left without a way to pay for their lifestyle in their later years.
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