In 2024, the Health Savings Account (HSA) limits, which are indexed for inflation every year, will increase, per the Internal Revenue Service (IRS).
HSAs are pre-tax accounts available to individuals covered under a high-deductible health plan. Eligible individuals can accumulate money — tax-free — in HSAs to pay for qualified medical expenses. The annual maximum HSA contribution for 2024 is:
- $4,150 for individuals with self-only coverage (an increase of $300 from 2023); and
- $8,300 for family coverage (an increase of $550 from 2023).
To participate in an HSA, the policyholder must, among other requirements, be enrolled in an HSA-qualified high-deductible health plan with a minimum annual deductible (not applicable to preventative services).
Individuals who are 55 years old or older may contribute an extra $1,000 as a catch-up contribution — an amount unchanged for 2024.
For calendar year 2024, a high-deductible health plan is defined as a health plan with an annual minimum deductible of:
- $1,600 for self-only coverage (an increase of $100 from 2023); or
- $3,200 for family coverage (an increase of $200 from 2023).
The maximum annual out-of-pocket expenses (deductibles, co-payments and other amounts — but not premiums) have also increased. For 2024, the maximum out-of-pocket amounts can’t exceed:
- $8,050 for self-only coverage (an increase of $550 from 2023); or
- $16,100 for family coverage (an increase of $1,100 from 2023).
For plan years beginning in 2024, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $2,100.
Be sure to add the new HSA limits to relevant employee communications, such as open enrollment and communication materials, plan documents and summary plan descriptions.
For more information on health savings account limits, visit the IRS website.
Katie Culliton, Editor, CalChamber