Welcome to BenefitWerks
Intelligent Benefits Platform for HR Departments, Brokers and Employees.
Latest posts
Benefits / Compliance / HR
IRS Releases Updates for 2024; New Contribution Limits
By Christie Wright | Published | No Comments
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
| 2023 | 2024 | Dollar Increase | Percent Increase | |
| HSA contribution limit (Employer and employee) | Individual: $3,850 Family: $7,750 | Individual: $4,150 Family: $8,300 | +$300 +$550 | 7.8% 7.1% |
| Catch-up contributions for ages 55+ | $1,000 | $1,000 | – | – |
| HDHP minimum qualifying deductible | Individual: $1,500 Family: $3,000 | Individual: $1,600 Family: $3,200 | +$100 +$200 | 6.7% |
| HDHP maximum out-of-pocket limit | Individual: $7,500 Family: $15,000 | Individual: $8,050 Family: $16,100 | +$550 +$1,100 | 7.3% |
| Excepted-benefit HRA contribution limit | $1,950 | $2,100 | +$150 | 7.7% |
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.
Leave a Reply