Thanks to the ongoing high inflation, employees will be able to put more money into their health savings accounts next year. HSA contribution limits for 2024 will see one of the biggest jumps in recent years, the IRS announced. The annual limit on HSA contributions for self-only coverage will be $4,150, a 7.8% increase from the $3,850 limit in 2023.
Employees 55 and older can contribute an extra $1,000 to their HSAs, which means an older married couple could contribute $10,300 in 2024, up from $9,750 this year.
The HSA contribution limits, which are adjusted for inflation each year, are detailed in IRS Revenue Procedure 2023-23 and will take effect in January 2024. The IRS lays out contribution limits and maximums for HSAs, HDHPs and excepted-benefit HRAs for 2024. Employers and their health plan partners should use these numbers to start planning for next year’s open enrollment period, including communications with employees about any changes to their health benefits.
HSA & HDHP Limits
|HSA contribution limit (Employer and employee)||Individual: $3,850
|Catch-up contributions for ages 55+||$1,000||$1,000||–|
|.HDHP minimum qualifying deductible||Individual: $1,500
|HDHP maximum out-of-pocket limit||Individual: $7,500
|Excepted-benefit HRA contribution limit||$1,950||$2,100||7.7%|