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IRS Announces HSA and HDHP Limits for 2024

Each year around this time the IRS announces the inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs), as they are required to do so annually prior to June 1st. On May 16, 2023, the IRS released Revenue Procedure 2023-23. 

Rev. Proc. 2023-23 addresses the following:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs;
• The maximum out-of-pocket expense limit for HDHPs; and
• HRA inflation adjustments.

The categorical limits noted above will of course differ depending on whether an individual has self-only or family coverage under an HDHP. The adjusted limits will go into effect as of January 1, 2024. Plan years beginning before that date use the 2023 HSA limits. Individuals are eligible to make contributions toward an HSA if they are enrolled in a qualifying HDHP and do not have other, disqualifying, first-dollar coverage (E.g., generally, please see IRS Publication 969).

For 2024, eligible individuals with self-only HDHP coverage may contribute up to $4,150 to their HSAs over the course of the year. This is an increase from 2023’s $3,850 maximum contribution amount. Those with family coverage under an HDHP will be permitted to contribute up to $8,300 to their HSAs in 2024, an increase from 2023’s $7,750 maximum contribution limit.

For 2024, the minimum deductible amount for HDHPs will increase to $1,600 for individual coverage and $3,200 for family coverage. Although, the HDHP maximum amount for annual out-of-pocket expenses (the amount that an individual is required to pay) will rise to $8,050 for self-only coverage and to $16,100 for family coverage, up from $7,500 and $15,000 from 2023, respectively.

There is no change to the age 55+ HSA catch-up limit rules for 2024. That value remains at $1,000 per year and will continue to allow individuals age 55 or older to put away an additional “catch-up” contribution up to that amount annually. 

The IRS also addressed the maximum amount that may be made newly available for the plan year for an excepted benefit HRA for plan years beginning in 2024. That amount will be set at $2,100 for 2024.

Additional Links:

• Out-of-Pocket Maximums Announced for 2024