Health Savings Account cost-of-living adjustments for 2024
The annual cost-of-living adjustments for Health Savings Account (HSA) contribution limits have been released by the IRS. Revenue Procedure 2023-23 details the changes made for calendar year 2024.
The updated limits apply to qualified high-deductible health plan (HDHP) deductibles and out-of-pocket maximums. Plan sponsors need to ensure that their payroll and administrative systems reflect the changes.
| HSA limit | 2024 | 2023 |
|---|---|---|
| Limit on HSA contributions* — single coverage | $4,150 |
$3,850 |
| Limit on HSA contributions* — family coverage |
$8,300 |
$7,750 |
| HDHP required minimum deductible — single coverage |
$1,600 |
$1,500 |
| HDHP required minimum deductible — family coverage |
$3,200 |
$3,000 |
| HDHP out-of-pocket maximum — single coverage |
$8,050 |
$7,500 |
| HDHP out-of-pocket maximum — family coverage |
$16,100 |
$15,000 |
| HSA catch-up contribution |
$1,000 |
$1,000 |
*These figures do not reflect the $1,000 catch-up contribution limit available for participants wage 55 or older. Catch-up contributions can be made at any time during the year the HSA participant turns 55.
The limits listed here are subject to yearly inflation adjustments.
Get more information on the HSA limits.
HSA eligibility
For individuals who have an HDHP and make contributions to an HSA that is set up to pay the medical expenses of the individual, their spouse and/or dependents are permitted to receive deductions for those contributions.
Individuals must participate in an HDHP to be eligible for HSA contributions. An HDHP is a health plan in which the annual deductible is not less than the minimum deductibles outlined in the list above. Additionally, the annual out-of-pocket expenses — excluding premiums but including copayments, deductibles and other amounts — cannot exceed the out-of-pocket maximum annually.
They may not receive benefits from other health plans, such as certain prescription drug benefits or general purpose health flexible spending accounts, which are considered impermissible coverage.
If you have questions regarding the 2023 or 2024 HSA cost-of-living adjustments, contact our team at HCM@wipfli.com.
