By: HUB’s EB Compliance Team
The IRS recently released the 2024 limits for health savings accounts (“HSAs”) and high deductible health plans (“HDHPs”). The 2024 figures with a comparison to the 2023 amounts are listed below:
| HSA Annual Contributions | 2023 | 2024 |
|---|---|---|
| Self-Only: | $3,850 | $4,150 |
| Family: | $7,750 | $8,300 |
| HDHP Minimum Deductible | 2023 | 2024 |
|---|---|---|
| Self-Only: | $1,500 | $1,600 |
| Family: | $3,000 | $3,200 |
| HDHP Out-of-Pocket Maximum Limits | 2023 | 2024 |
|---|---|---|
| Self-Only: | $7,500 | $8,050 |
| Family: | $15,000 | $16,100 |
Notably, these are some pretty large increases following the increases for 2023, which were among the largest increases in these amounts. The surges reflect continuing inflationary pressures. As a reminder, “family” coverage means any coverage other than self-only.
Non-calendar year plans are not required to comply with the 2024 deductible and out-of-pocket maximum limits until their plans renew in 2024. However, since HSA contribution limits generally apply on a calendar year basis, employees are allowed to contribute within the 2024 calendar year an amount equivalent to the annual HSA maximum in the chart above if they have HDHP coverage for the entire 2024 calendar year.
Takeaways
Employers with HDHPs that allow payroll deduction contributions to HSAs should pay attention to these limits for their 2024 planning. In doing so, they should be wary of any embedded deductibles which may cause their plan to fail to qualify as an HDHP. This would mean that employees could not contribute to HSAs under that plan. Additionally, plans need to consider the 2024 out-of-pocket maximum limits under the Affordable Care Act and the Affordable Care Act’s embedded out-of-pocket maximum requirements.
If you have any questions, please contact your HUB Advisor. View more compliance articles in our Compliance Directory.
NOTICE OF DISCLAIMER
Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s or individual's specific circumstances. It is based on Hub International's understanding of the law as it exists on the date of this publication. Subsequent developments may result in this information becoming outdated or incorrect and Hub International does not have an obligation to update this information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your or your organization’s particular needs.