IRS Issues Health Savings Account (HSA) limits for 2024

May 17, 2023

The IRS has issued (Rev. Proc. 2023-23) the inflation-adjusted limits for Health Savings Accounts for 2024. The 2024 amounts, and the comparable amounts for 2023 and 2022:

         2022         2023            2024
HSA Contribution limit: Single plans  $    3,650  $    3,850  $        4,150
HSA Contribution limit: Family plans  $    7,300  $    7,750  $        8,300
Minimum deductible, Single plans    $    1,400  $    1,500  $        1,600
Minimum deductible, Family plans  $    2,800  $    3,000  $        3,200
Out-of-pocket cap, Single plans  $    7,050  $    7,500  $        8,050
Out-of-pocket cap, Family plans  $  14,100  $  15,000  $      16,100


A "catch-up" contribution is allowed for HSA holders who are 55 or older by the end of the tax year. Those participants can contribute and extra $1,000 over the annual HSA contribution limit for the year. So, a contribution of $5,150 for a singe plan or up to $10,300 for a family plan is allowed for 2024 if the participant is over the age of 55.

Health Savings Accounts are IRA-like accounts designed to accumulate funds for coverage of out-of-pocket health costs. Qualifying contributions generate an "above-the-line" deduction on 1040s, with no phaseouts for high-income filers.

HSAs are often overlooked as a personal financial planning tool. The high deductible can lower health insurance costs for qualifying taxpayers. For higher-income individuals, the combination of an up-front deduction and tax-deferred accumulation of earnings on savings make them a powerful savings vehicle. 

To learn more about whether HSAs should be part of your financial planning, contact a member of the Eide Bailly Wealth Planning team or your local Eide Bailly professional.



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