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IRS Reveals HSA Limits for 2024

Last week, the IRS released Health Savings Account (HSA) contribution limits for 2024, and we're seeing a 7.8% increase over last year. Contribution limits are adjusted for inflation (rounded to the nearest $50) annually, using the Consumer Price Index for All Urban Consumers for the 12-month period ending on March 21.

HSA Contribution Limits

Self-only coverage: Individuals with self-only high-deductible health plans (HDHPs) can contribute up to $4,150 to their HSA, representing a $300 increase from the previous year.

Family coverage: Those with family HDHP coverage can contribute up to $7,600 to their HSA, which reflects a $100 increase compared to 2023.

It is important to note that these limits include both employee and employer contributions combined. However, catch-up contributions for individuals aged 55 or older remain unchanged at $1,000 (fixed by statute).

HDHP Minimum Deductible and Out-of-Pocket Maximum

To participate in an HSA, you must be enrolled in a HDHP. The IRS also adjusted the minimum deductible and out-of-pocket maximum requirements for HDHPs in 2024. The new limits are as follows:

Minimum deductible: For self-only coverage, the minimum deductible for an HDHP must be at least $1,600 (up by $100), while for family coverage, it should be at least $3,200 (increased by $200).

Out-of-pocket maximum: The maximum out-of-pocket expenses allowed for self-only coverage has increased to $8,050 (up by $550), and for family coverage, it rose to $16,100 (up by $1,100).

Expected Benefits HRA

The IRS also announced it will raise the maximum amount employers may contribute to an excepted-benefit health reimbursement arrangement (HRA) in 2024 to $2,100 (up from $1,950).

  2024 2023
HSA Contribution Limits $4,150 Individual
$7,600 Family

$3,850 Individual
$7,750 Family
$1000 Catch-up

HDHP Max Out-of-Pocket Limits

$8,050 Individual
$16,100 Family

$7,500 Individual
$15,000 Family
HDHP Minimum Deductible Limits $1,600 Individual
$3,200 Family
$1,500 Individual
$3,000 Family
Excepted Benefit HRA Contributions Limits $2,100 $1,950

The announcement of the 2024 HSA contribution limits by the IRS brings good news for those utilizing HSAs as part of their healthcare and financial strategies. These changes aim to ensure that HDHPs remain aligned with rising healthcare costs while maintaining the necessary balance between providing coverage and encouraging individuals to save for future healthcare needs.

See how Medcom Benefit Solutions can help you with your HSA administration by checking out our Solutions page or contacting us at Already have an account with us? Contact our CDHP customer service team!

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