The IRS recently released Rev. Proc 2023-23 listing the 2024 indexed amounts for health savings accounts (HSAs), high deductible health plans (HDHPs), and excepted-benefit health reimbursement arrangements (HRAs).
IRS Releases 2024 Inflation-Adjusted Amounts For HSAS, HDHPS, And HRAS
The IRS recently released Rev. Proc 2023-23 listing the 2024 indexed amounts for health savings accounts (HSAs), high deductible health plans (HDHPs), and excepted-benefit health reimbursement arrangements (HRAs). The following table lists the current 2023 amounts and the new 2024 amounts:
Calendar Year 2023 | Calendar Year 2024 | |||
Applicable Limit | Self-Only Coverage | Family Coverage | Self-Only Coverage | Family Coverage |
HSA Annual Contribution Limit | $3,850 | $7,750 | $4,150 | $8,300 |
HDHP Minimum Annual Deductible | $1,500 | $3,000 | $1,600 | $3,200 |
HDHP Out-of-Pocket Maximum Amount |
$7,500 | $15,000 | $8,050 | $16,100 |
The Revenue Procedure also provides that for plan years beginning in 2024, the maximum amount that may be made newly available for an excepted-benefit HRA for the plan year is $2,100 (up from $1,950 in 2023). The HSA maximum annual catch-up contribution (for individuals who are 55 and older) is set by statute at $1,000 and therefore will not change from 2023 to 2024.
Winston Takeaway: Employers should communicate these new limits to participants during their 2024 open enrollment, and update their plan documents accordingly. Please contact a Winston & Strawn Employee Benefits and Executive Compensation attorney with questions regarding these updates and how they may impact your benefit plans.
Winston & Strawn Paralegal Kristine Lofquist also contributed to this blog post.