Great news! The IRS has announced that the annual contribution limits to health savings accounts (HSAs) for 2024 are increasing. The self-only coverage limit will be raised to $4,150, which is a 7.8% increase from last year’s limit of $3,850. For family coverage, the HSA contribution limit is going up to $8,300, a 7.1% increase from last year’s limit of $7,750. If you’re aged 55 or older, you can contribute an additional $1,000 to your HSA. https://www.irs.gov/pub/irs-drop/rp-23-23.pdf
In addition to these changes, for 2024, a high-deductible health plan (HDHP) must have a minimum deductible of $1,600 for self-only coverage, which is up from $1,500 in 2023. For family coverage, the minimum deductible is $3,200, up from $3,000. The annual out-of-pocket expense maximums for HDHPs (including deductibles, co-payments, and other amounts, but not premiums) have also increased. The limit for self-only coverage is now $8,050, up from $7,500, while family coverage now has a limit of $16,100, up from $15,000.
Finally, the IRS will raise the maximum amount that employers can contribute to an excepted-benefit health reimbursement arrangement (HRA) to $2,100 for 2024, which is an increase from the 2023 limit of $1,950. It’s important to note that there are no income limits for HSA eligibility, but the plan must be established through an employer with an HDHP.
These changes will take effect in January 2024, so be sure to keep them in mind as you plan for the coming year.
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Lisa Smith, SPHR, SCP
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