Health Savings Account limits announced for 2024

The 2024 limits for HSA contributions have been published by the IRS with a notable increase in allowable contributions. For individual coverage, limits have increased by 7.8 percent, bringing the contribution limit to $4,150. For those with an HSA covering the whole family, limits rose 7.1 percent, to an allowable maximum contribution of $8,300.

Increases in these contribution limits typically occur annually, though the percentage increase has grown in recent years. In 2021 (for the 2022 benefit year), rates increased by about 1.4 percent, then by 5.5 percent from 2022 into 2023, and most recently, over 7 percent for both self-only and family plans. Participants aged 55 or older can still contribute an additional $1,000 as a catch-up amount in 2024.

Changes to limits for 401(k) contributions and other benefits like flexible spending accounts are yet to be released. As open enrollment season approaches in fall 2023, employers should begin conversations about changes to their offerings, including whether to increase employer contributions to HSAs given the new limits. Employees can reach out to their InTANDEM HR account manager with questions about health savings accounts and complementary high-deductible medical plans.