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IRS Releases Updates for 2024; New Contribution Limits

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The new IRS contribution limits mark the largest-ever increase in the amount Americans can set aside in health savings accounts.

Recently, on May 16, 2023, the IRS released Revenue Procedure 2023-23, the cost-of-living adjustments to the following:

  • 2024 inflation-adjusted limits for HSA contributions
  • 2024 HDHP minimum deductible amount and maximum out-of-pocket costs
  • 2024 excepted benefit HRA maximum contribution amount

All limits are effective January 1, 2024, and the new amounts for the HDHP deductible and out-of-pocket limits apply to HDHPs with plan years beginning on or after January 1, 2024. The HSA catch-up contribution for individuals ages 55 and older will not change as it is not subject to cost-of-living adjustments.

Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans

HSA & HDHP Limits

20232024Dollar IncreasePercent Increase
HSA contribution limit (Employer and employee)Individual: $3,850

Family: $7,750
Individual: $4,150

Family: $8,300


Catch-up contributions for ages 55+$1,000$1,000 – –
HDHP minimum qualifying deductibleIndividual: $1,500

Family: $3,000
Individual: $1,600

Family: $3,200


HDHP maximum out-of-pocket limitIndividual: $7,500

Family: $15,000
Individual: $8,050

Family: $16,100


Excepted-benefit HRA contribution limit$1,950$2,100+$1507.7%

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.

Account Executive, β Division

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