Available at https://www.irs.gov/pub/irs-drop/rp-23-23.pdf

Health savings accounts, or HSAs, are already a great way to set aside money for medical costs. The IRS recently announced that for 2024 it is making “the largest ever increase to the amount Americans can set aside in health savings accounts each year”, according to The Wall Street Journal.

The IRS has released the 2024 cost-of-living adjusted limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs):

  • HSA Contribution Limits. The 2024 annual HSA contribution limit is $4,150 for individuals with self-only HDHP coverage (up from $3,850 in 2023), and $8,300 for individuals with family HDHP coverage (up from $7,750 in 2023). The amount you can contribute to an HSA each year is determined by whether you are enrolled in self-only or family coverage and if you are age 55 or older. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

  • HDHP Minimum Deductibles. The 2024 minimum annual deductible is $1,600 for self-only HDHP coverage (up from $1,500 in 2023) and $3,200 for family HDHP coverage (up from $3,000 in 2023).

  • HDHP Out-of-Pocket Maximums. The 2024 limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) is $8,050 for self-only HDHP coverage (up from $7,500 in 2023), and $16,100 for family HDHP coverage (up from $15,000 in 2023).

According to Kevin Robertson, senior vice president and chief revenue officer at HSA Bank, the new limits are a significant jump, but with several months of rising inflation, they aren’t a big surprise as employees are faced with growing costs as well.