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2024 Spending Account Limits

    June 14, 2023

     

    IRS Gives Big Boost to HSA, HDHP Limits in 2024

     

    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.

    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

     

    IRS Gives Big Boost to HSA, HDHP Limits in 2024 (shrm.org)

    Commentary by: Raylea Stelmach

    Edited by: Kim Moss