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HSA Contribution Limits Get Biggest-Ever Boost for 2024

KEY POINTS

For 2024, the annual contribution limit for health savings accounts, or HSAs, is rising to $4,150 from $3,850 for self-only plans, which is a 7.8% increase.
The deposit limit for family plans will also have a sizable increase of about 7% for 2024, jumping to $8,300 from $7,750.
You must have a high-deductible health insurance plan to make contributions, but HSAs can offer three tax benefits, experts say.

The IRS is giving a big boost for 2023 and you will be able to sock away a lot more money in your health savings accounts (HSAs) next year.

Annual HSA contribution limits for 2024 are increasing in one of the biggest jumps in recent years, the IRS announced May 16: The annual limit on HSA contributions for self-only coverage will be $4,150, a 7.8 percent increase from the $3,850 limit in 2023. For family coverage, the HSA contribution limit jumps to $8,300, up 7.1 percent from $7,750 in 2023.

Participants 55 and older can contribute an extra $1,000 to their HSAs. This amount will remain unchanged.

Meanwhile, for 2024, a high-deductible health plan (HDHP) must have a deductible of at least $1,600 for self-only coverage, up from $1,500 in 2023, or $3,200 for family coverage, up from $3,000, the IRS noted. Annual out-of-pocket expense maximums (deductibles, co-payments and other amounts, but not premiums) cannot exceed $8,050 for self-only coverage in 2024, up from $7,500 in 2023, or $16,100 for family coverage, up from $15,000.

The IRS also announced it will raise the maximum amount that employers may contribute to an excepted-benefit health reimbursement arrangement (HRA) in 2024 to $2,100—up from the 2023 amount of $1,950.

The increases are detailed in IRS Revenue Procedure 2023-23 and take effect in January 2024.

Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans

	2024	2023	Change
HSA contribution limit (employer + employee)	Self-only: $4,150 Family: $8,300	Self-only: $3,850 Family: $7,750	Self-only: +$300 Family: +$550
HSA catch-up contributions (age 55 or older)	$1,000	$1,000	No change (set by statute)
HDHP minimum deductibles	Self-only: $1,600 Family: $3,200	Self-only: $1,500 Family: $3,000	Self-only: +$100 Family: +$200
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)	Self-only: $8,050 Family: $16,100	Self-only: $7,500 Family: $15,000	Self-only: +$550 Family: +$1,100
Source: IRS, Revenue Procedure 2023-23.

2023 HSA contribution limits Announced

December 22, 2020 No Comments

The IRS announced an increase in health savings account (HSA) contribution limits for the 2023 tax year. Here is what you need to know about