The IRS has released the HSA and HDHP limits for 2024. The annual contribution limits, minimum deductible, and out-of-pocket amounts all increased over the 2023 limits. They also released the 2024 excepted benefit HRA amount, which also increased over 2023. Plan sponsors with an HDHP offering should ensure that the deductibles comply with the new minimum amounts.
Download this FYI as a printable PDF.
Background
In Revenue Procedure 2023-23, the IRS issued the calendar year 2024 inflation-adjusted contribution limits for health savings accounts (HSAs) along with the minimum deductible and maximum out-of-pocket (OOP) limits for high deductible health plans (HDHPs). (See our August 12, 2019 FYI for more information on excepted benefit health reimbursement arrangements (HRAs).)
| 2024 | 2023 | Change | |
| HSA statutory contribution amount | |||
|
Self-only |
$4,150 | $3,850 | + $300 |
|
Family |
$8,300 | $7,750 | + $550 |
| Catch-up contribution (age 55 or older) | $1,000 | $1,000 | no change |
| HDHP minimum deductible amount | |||
|
Self-only |
$1,600 | $1,500 | + $100 |
|
Family |
$3,200 | $3,000 | + $200 |
| HDHP maximum out-of-pocket amount | |||
|
Self-only |
$8,050 | $7,500 | + $550 |
|
Family |
$16,100 | $15,000 | + $1,100 |
| Excepted benefit HRA maximum benefit | $2,100 | $1,950 | + $150 |
In closing
Plan sponsors with HDHP deductibles below the new minimums of $1,600 for self-only and $3,200 for family coverage will need to increase those deductibles in 2024. While the OOP maximums have increased for 2024, they are still below the maximum limits on cost sharing allowed in 2024 under the Affordable Care Act (ACA) of $9,450 for self-only and $18,900 for family coverage.
Volume 46 | Issue 06