On May 16, 2023, the IRS released Revenue Procedure 2023-23, which provides the 2024 inflation-adjusted limits for HSAs and HSA-qualifying HDHPs. According to the revenue procedure, the 2024 annual HSA contribution limit will increase to $4,150 for individuals with self-only HDHP coverage (up $300 from 2023) and to $8,300 for individuals with anything other than self-only HDHP coverage (family or self +1, self + child(ren), or self + spouse/domestic partner coverage), an increase of $550 from 2023.
For qualified HDHPs, the 2024 minimum statutory deductibles will be $1,600 for self-only coverage (up $100 from 2023) and $3,200 for individuals with anything other than self-only coverage (an increase of $200 from 2023). The 2024 maximum out-of-pocket limits will increase to $8,050 for self-only coverage (up $550 from 2023) and up to $16,100 for anything other than self-only coverage (up $1,100 from 2023). For reference, out-of-pocket limits on expenses include deductibles, copayments and coinsurance, but not premiums. Additionally, the catch-up contribution maximum remains $1,000 for individuals aged 55 years or older (this is a fixed amount not subject to inflation).
The maximum amount that may be made newly available for plan years beginning in 2024 for excepted benefit HRAs is $2,100 (up $150 from 2023).
The 2024 limits may impact employer benefit strategies, particularly for employers coupling HSAs with HDHPs. Employers should ensure that employer HSA contributions and employer-sponsored qualified HDHPs are designed to comply with the 2024 limits.
Revenue Procedure 2023-23 »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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