HSA/HDHP Limits Will Increase for 2024
On May 16, 2023, the IRS released Revenue Procedure 2023-23 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2024. The IRS is required to publish these limits by June 1 of each year.
These limits include:
The maximum HSA contribution limit;
The minimum deductible amount for HDHPs; and
The maximum out-of-pocket expense limit for HDHPs.
These limits vary based on whether an individual has self-only or family coverage under an HDHP.
Eligible individuals with self-only HDHP coverage will be able to contribute $4,150 to their HSAs for 2024, up from $3,850 for 2023. Eligible individuals with family HDHP coverage will be able to contribute $8,300 to their HSAs for 2024, up from $7,750 for 2023. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.
The minimum deductible amount for HDHPs increases to $1,600 for self-only coverage and $3,200 for family coverage for 2024 (up from $1,500 for self-only coverage and $3,000 for family coverage for 2023). The HDHP maximum out-of-pocket expense limit increases to $8,050 for self-only coverage and $16,100 for family coverage for 2024 (up from $7,500 for self-only coverage and $15,000 for family coverage for 2023).
Action Steps
Employers that sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2024. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.
Highlights
Each year, the IRS announces inflation-adjusted limits for HSAs and HDHPs.
By law, the IRS is required to announce these limits by June 1 of each year.
The adjusted contribution limits for HSAs take effect as of Jan. 1, 2024.
The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after Jan. 1, 2024.
Important Dates
January 1, 2024
The new contribution limits for HSAs become effective.
2024 Plan Years
The HDHP cost-sharing limits for 2024 apply for plan years beginning on or after Jan. 1, 2024.
HSA/HDHP Limits
The following chart shows the HSA and HDHP limits for 2024 as compared to 2023. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.
|
Type of Limit |
2024 |
2023 |
Change |
|
|
HSA Contribution Limit |
Self-only |
$4,150 |
$3,850 |
Up $300 |
|
Family |
$8,300 |
$7,750 |
Up $550 |
|
|
HSA Catch-up Contributions (not subject to adjustment for inflation) |
Age 55 or older |
$1,000 |
$1,000 |
No change |
|
HDHP Minimum Deductible |
Self-only |
$1,600 |
$1,500 |
Up $100 |
|
Family |
$3,200 |
$3,000 |
Up $200 |
|
|
HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) |
Self-only |
$8,050 |
$7,500 |
Up $550 |
|
Family |
$16,100 |
$15,000 |
Up $1,100 |
|