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Updates to HSA Contribution Limits for 2024

The IRS has announced increases to the Health Savings Account (HSA) contribution limits for 2024. These adjustments are based on the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) and reflect the impact of inflation on healthcare costs. Despite a downward trend in inflation, last year saw higher-than-normal rates (around 7%-8%), resulting in significant increases to the HSA contribution limits.


For 2024, the individual coverage HSA contribution limit will increase by $300, reaching $4,150. For family coverage (employee plus at least one other covered individual), the HSA contribution limit will increase by $550, reaching $8,300. It's important to note that the catch-up contribution limit for individuals aged 55 and above remains fixed at $1,000 and does not adjust for inflation.


In addition to the HSA contribution limits, the IRS update also includes the minimum deductible and out-of-pocket maximums required for a plan to qualify as a high deductible health plan (HDHP) and allow individuals to make or receive HSA contributions.


For 2024, the minimum deductible for individual coverage will increase by $100, reaching $1,600. The minimum deductible for family coverage will increase by $200, reaching $3,200. The maximum out-of-pocket limit for individual coverage will increase by $550, reaching $8,050. For family coverage, the maximum out-of-pocket limit will increase by $1,100, reaching $16,100.


Contact your Boutwell Fay attorney for more information about this topic or email us at attorneys@boutwellfay.com.

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