2024 HSA Contribution Limits Announced

The IRS recently announced the Health Savings Account (HSA) limits for 2024 (with applicable cost-of-living adjustments). [Revenue Procedure 2023-23]

An individual is eligible to contribute to an HSA, with respect to any month, if covered under a high deductible health plan (HDHP) on the first day of such month. For 2024, the maximum annual HSA contribution limit is $4,150 (up from $3,850 for 2023) for an individual with self-only coverage under an HDHP and $8,300 (up from $7,750 for 2023) for an individual with family coverage under an HDHP. Individuals who are age 55 or older during the year may make an additional catch-up contribution of $1,000 to their own HSA.

Generally, a health plan qualifies as an HDHP if it has a minimum annual deductible above a certain limit and limits the annual deductible and out-of-pocket expenses paid to below a certain limit. The minimum HDHP deductible for 2024 is $1,600 (up from $1,500 for 2023) for self-only coverage and $3,200 (up from $3,000 for 2023) for family coverage. The maximum HDHP out-of-pocket expenses for 2024 is $8,050 (up from $7,500 for 2023) for self-only coverage and $16,100 (up from $15,000 for 2023) for family coverage.