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 |
| HDHP Out-of-Pocket
Amount (Deductibles, co-payments, and other amounts, but not premiums) |
$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.
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.