The IRS has released its 2024 annual inflation adjustments for Health Savings Accounts (“HSAs”) as determined under Section 223 of the Internal Revenue Code. Specifically, IRS Revenue Procedure 2023-23 provides the adjusted limits for contributions to a HSA, as well as the high deductible health plan (“HDHP”) minimums and maximums for calendar year 2024.
Additionally, Revenue Procedure 2023-23 sets forth the maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements (“HRAs”) as provided under 26 CFR 54.9831-1(c)(3)(viii).
The 2024 HSA/HDHP limits are as follows:
- Annual Contribution Limit
- Single Coverage: $4,150
- Family Coverage: $8,300
- HDHP-Minimum Deductible
- Single Coverage: $1,600
- Family Coverage: $3,200
- HDHP-Maximum Annual Out-of-Pocket Expenses (including deductibles, co-payments, and other amounts, but not including premiums)
- Single Coverage: $8,050
- Family Coverage: $16,100
- The catch-up contribution for eligible individuals age 55 or older by year end remains at $1,000.
Plans and related documentation, including employee communications, should be updated to reflect these new limits which are effective for calendar year 2024.
As always, please keep in mind that participation in a health FSA (or any other non-HDHP) will result in HSA ineligibility, unless the health FSA is limited to: (1) limited-scope dental or vision excepted benefits; and/or (2) post-deductible expenses.
The 2024 EBHRA limit is as follows:
The maximum amount that may be made newly available for the plan year for an excepted benefit HRA (“EBHRA) is $2,100. This amount is effective for plan years beginning in 2024.
If you have any questions about these products or would like assistance with updating documentation or employee communications, feel free to contact us.
As you are aware, the law and guidance are rapidly evolving in this area. Please check with your Fraser Trebilcock attorney for the most recent updates.
This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.
Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at firstname.lastname@example.org.