IRS Releases 2024 Limits for Health Savings Accounts (HSAs)

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.

More Information

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The above information does not constitute advice. Always contact your employee benefits broker or trusted advisor for insurance-related questions.