Introduction
The IRS announced the new 2024 HSA (Health Savings Account) contribution limits in mid-May 2023. Thanks to inflation over the past year or so, the increases are pretty significant as compared to historical patterns.
Any such increases are tied to the Chained Consumer Price Index to account for the effects of broad-based inflation.
The annual limit for self-only contributions in 2024 will be $4,150. For family coverage, the new limit will be $8,300. The $1,000 catch-up contribution remains for those who reach age 55 or older in the calendar year.
HSA Contribution Limits for 2024
The new limits for 2024 are summarized in the following table along with a comparison to the 2023 numbers. As a reminder, these amounts are for combined contributions from both the employee and employer.
| Coverage | 2024 Limits | 2023 Limits | Change |
| Self-Only | $4,150 | $3,850 | $300 |
| Family | $8,300 | $7,750 | $550 |
| Catch-Up (age 55+) | $1,000 | $1,000 | None |
You can use these numbers to start planning for 2024. Because of the tax treatment of HSAs, they can be a solid part of your overall financial strategy.
HDHP Deductibles and Out-Of-Pocket Maximums for 2024
Of course, in order to use a Health Savings Account, you have to be enrolled in a High Deductible Health Plan (HDHP). The IRS defines what qualifies as an HDHP, and part of that standard includes both minimum annual deductibles and maximum out-of-pocket maximums.
As with the HSA limits, the minimums and maximums are re-evaluated each year against the relevant inflation rate. These new amounts are summarized below in two tables with a comparison to the current 2023 minimums.
Your plan might have a higher deductible.
| Coverage | 2024 Minimum | 2023 Minimum | Change |
| Self-Only | $1,600 | $1,500 | $100 |
| Family | $3,200 | $3,000 | $200 |
The total out-of-pocket maximum includes all payments you are responsible for under the plan, such as the deductible and any co-pays EXCLUDING the premiums. Your plan might have a lower out-of-pocket cap.
| Coverage | 2024 Maximum | 2023 Maximum | Change |
| Self-Only | $8,050 | $7,500 | $550 |
| Family | $16,100 | $15,000 | $1,100 |
In Closing
Use the newly-announced 2024 HSA contribution limits and deductible levels as you look ahead to next year’s financial plan. The increases are higher than normal, a reflection of the inflation we’ve seen throughout the economy in the past year or so.