On May 16, 2023, the IRS released Revenue Procedure 2023-23 to provide the inflation-adjusted limits for health savings accounts (HSA) and high deductible health plans (HDHP) 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.
 
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 20242023Change
HSA Contribution LimitSelf-only$4,150$3,850Up $300
HSA Contribution LimitFamily$8,3007,750Up $550
HSA Catch-up Contributions 
(not subject to adjustment for inflation)		Age 55 or older$1,000$1,000No change
HDHP Minimum DeductibleSelf-only$1,600$1,500Up $100
HDHP Minimum DeductibleFamily$3,200$3,000Up $200
HDHP Maximum Out-of-pocket Expense Limit 
(deductibles, copayments and other amounts, but not premiums)		Self-only$8,050$7,500Up $550
HDHP Maximum Out-of-pocket Expense Limit 
(deductibles, copayments and other amounts, but not premiums)		Family$16,100$15,000Up $1,100
 
 

Previous SIMA Benefits News:

Health FSA Limit Will Increase for 2023

How the End of the COVID-19 Emergency Periods Will Impact Health Plans

COBRA: Qualifying Events

 

Disclosures: This content is not intended to be exhaustive, nor should it be viewed as legal or tax advice. Information presented is believed to be current and is provided for general information and educational purposes based upon publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of this information. It is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid any penalties. You should always consult an attorney or tax professional regarding your specific legal or tax situation. This information may change at any time and without notice. All opinions represent the judgment of the author on the date of the post and are subject to change. Content should not be viewed as personalized advice. SIMA reserves the right to edit blog entries and delete comments that contain offensive or inappropriate language. ©2023 Zywave, Inc. All rights reserved

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