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:
|Applicable Limit||Calendar Year 2023||Calendar Year 2023|
|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|
(Deductibles, co-payments, and other amounts, but not premiums)
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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.