What is the maximum HSA contribution limit for an individual in 2023?

For the year 2023, the maximum contribution limit for an individual health savings account (HSA) is set at $3,850. This limit applies to individuals with self-only coverage under a high-deductible health plan (HDHP). The HSA contribution limits are adjusted annually for inflation, which is why it's important to verify the current limits set by the IRS.

The importance of this limit lies in the tax advantages of HSAs; contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free, making HSAs an appealing savings vehicle for individuals looking to manage healthcare costs while benefiting from tax savings.

In the context of your question, the choice indicating $3,850 is indeed the correct contribution limit for individuals for 2023, reflecting the IRS guidelines established for that year.