HSA Amounts Increase for 2024
The IRS recently released Rev. Proc. 2023-23, issued pursuant to Sec. 223(g), announcing that the maximum contribution to a health savings account (HSA) and certain associated amounts will be higher in 2024. In addition, the procedure includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements (HRAs) under Regs. Sec. 54.9831-1(c)(3)(viii).
For calendar year 2024, the maximum contribution to an HSA that may be made by an individual with self-only coverage under a high-deductible health plan (HDHP) will be $4,150, up $300 from 2023. For an individual with family coverage under a HDHP, the maximum will be $8,300, a $550 increase from the current limit of $7,750. Individuals who are age 55 or older may make a $1,000 "catch-up" contribution before the end of the tax year.
The minimum annual deductible amount and maximum out-of-pocket amounts of HDHPs are also adjusted for inflation for 2024. A qualifying HDHP must have an annual deductible of at least $1,600 for self-only coverage or $3,200 for family coverage, increases of $100 and $200, respectively. Annual out-of-pocket expenses, including deductibles, co-payments and other amounts exclusive of premiums, may not be more than $8,050 for self-only coverage or $16,100 for family coverage. These amounts are increases of $550 and $1,100, respectively.
For plan years beginning in 2024, the maximum amount that may be made newly available for an excepted-benefit HRA under Regs. Sec. 54.9831-1(c)(3)(viii) is $2,100, a $150 increase from 2023.