IRS Releases 2024 Limits for Health Savings Accounts (HSAs)
May 26, 2023
The IRS has announced the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for the year 2024. This information has been published in Rev. Proc. 2023-23, which outlines the updated amounts for the upcoming year.
Maximum HSA Contribution
For 2024, individuals with self-only coverage can contribute up to $4,150, while those with family coverage can contribute up to $8,300. These figures represent an increase from the 2023 limits of $3,850 and $7,750, respectively. It's worth noting that the additional catch-up contribution of $1,000 for individuals aged 55 or older remains the same.
Minimum HDHP Deductible
In addition, the minimum deductible for an HSA-compatible HDHP will also be updated. For plan years beginning in 2024, the minimum deductible will be raised to $1,600 for self-only coverage and $3,200 for family coverage. This represents an increase from the current minimum deductible amounts of $1,500 for self-only coverage and $3,000 for family coverage.
Maximum HDHP Out-of-Pocket Expense
For plan years starting in 2024, the maximum amount that participants can be responsible for paying out of pocket (excluding premiums) will be raised. Individuals with self-only coverage can now be responsible for up to $8,050, while those with family coverage can be responsible for up to $16,100. These figures represent an increase from the 2023 limits of $7,500 for self-only coverage and $15,000 for family coverage.
It's important to note that the above limitations only apply to high deductible health plans (HDHPs) that are eligible for use with a health savings account (HSA). Health plans that are not paired with an HSA are not subject to these limitations. However, it's worth mentioning that all non-grandfathered group health plans are still required to adhere to the maximum out-of-pocket limits set forth by the Affordable Care Act (ACA). These limits have already been released for the 2024 plan year, with self-only coverage capped at $9,450 and family coverage capped at $18,900.
The above information does not constitute advice. Always contact your employee benefits broker or trusted advisor for insurance-related questions.
EB Compliance Practice Leader
Holly leads Hylant’s ongoing efforts to provide our clients with exceptional compliance consulting services on new developments as well as ongoing requirements affecting health and welfare plans. She has a deep understanding of federal and state regulations pertaining to employee benefit plans, as well as extensive experience in group benefit plan operation.
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