IRS Announces Increased HSA, HDHP, and EBHRA Limits for 2024

Written by National Employee Benefits Practice | May 17, 2023 3:19:45 PM

The Internal Revenue Service (IRS) recently announced in Revenue Procedure 2023-23 inflation adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2024, along with the maximum amount for excepted benefit health reimbursement arrangements (EBHRAs)^[1] for 2024.

The table below compares the applicable dollar limits for HSAs, HDHPs, and EBHRAs for 2024 and 2023.

Plan Limits		2024	2023	Change from 2023
HSAs – annual contribution limit^[2]	Self-only coverage	$4,150	$3,850	Increase of $300
HSAs – annual contribution limit^[2]	Family coverage	$8,300	$7,750	Increase of $550
HSAs – catch-up contribution limit	Age 55 or older	$1,000	$1,000	No change
HDHPs – minimum annual deductible	Self-only coverage	$1,600	$1,500	Increase of $100
HDHPs – minimum annual deductible	Family coverage	$3,200	$3,000	Increase of $200
HDHPs – maximum annual out-pocket limit (deductibles, copayments, and other amounts, excluding premiums)	Self-only coverage	$8,050	$7,500	Increase of $550
	Family coverage	$16,100	$15,000	Increase of $1,100
EBHRAs– maximum amount		$2,100	$1,950	Increase of $150

Next Steps for Employers

Review the table above to be informed of 2024 plan and contribution limits for January 1, 2024 as you start to consider any plan design changes for the 2024 plan year.
As you begin preparations for the 2024 plan year, be sure to update payroll and benefit administration systems with these new limits for 2024 and revise applicable plan communications (e.g., open enrollment materials and summary plan descriptions) for 2024.
Stay tuned for 2024 contribution limits for other tax-advantaged accounts (such as Flexible Spending Accounts, commuter benefit plans, and retirement plans) later in the year, typically announced by the IRS in October or November.

Risk Strategies is here to help. Contact us directly at benefits@risk-strategies.com

[1] Employers offer EBHRAs to reimburse the cost of excepted benefits (such as limited-scope dental or vision coverage) as well as short-term, limited-duration insurance plan premiums.

[2] Includes both employee and employer contribution amount limits.

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