2023 2024 HSA Contribution Limits and HDHP Qualification (2024)

FAQs

2023 2024 HSA Contribution Limits and HDHP Qualification? ›

The 2024 HSA contribution limits are as follows: 2024 HSA contribution limits: An individual with coverage under a qualifying high-deductible health plan (deductible not less than $1,600) can contribute up to $4,150 — up $300 from 2023 — for the year. The maximum out-of-pocket is capped at $8,050.

For 2024, individuals under a high deductible health plan (HDHP) have an HSA annual contribution limit of $4,150. The HSA contribution limit for family coverage is $8,300. Those amounts are about a 7% increase over what you could contribute last year.

Limit on Contributions

For 2024, if you have self-only HDHP coverage, you can contribute up to $4,150. If you have family HDHP coverage, you can contribute up to $8,300.

For calendar year 2023, a “high deductible health Page 2 2 plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but ...

HSA: Eligibility

You must participate in a High Deductible Health Plan, have no other insurance coverage other than those specifically allowed, and not be claimed as a dependent on someone else's tax return in order to be eligible for an HSA.

The HDHP maximum out-of-pocket expense limit increases to $8,050 for self-only coverage and $16,100 for family coverage for 2024 (up from $7,500 for self-only coverage and $15,000 for family coverage for 2023).

2024 High Deductible Health Plan and HSA limit changes

Minimum deductible: $1,600 for self-only coverage ($100 increase from 2023) $3,200 for family coverage ($200 increase from 2023) $3,200 for embedded individual deductible ($200 increase from 2023)

For 2024, there is a $150 increase to the contribution limit for these accounts. An employee who chooses to participate in an FSA can contribute up to $3,200 through payroll deductions during the 2024 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax.

Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used.

You can't contribute to an HSA if you have Medicare coverage, or a plan that pays its share of a covered service without you having to pay deductibles or copayments first (called “first dollar coverage”).

What are the HDHP rules for 2023? ›

Those with family coverage under an HDHP will be permitted to contribute up to $7,750 to their HSAs in 2022, an increase from 2022's $7,300 maximum contribution limit. For 2023, the minimum deductible amount for HDHPs will increase to$1,500 for individual coverage and $3,000 for family coverage.

Per IRS guidelines in 2024, an HDHP is a health insurance plan with a deductible of at least $1,600 if you have an individual plan or a deductible of at least $3,200 if you have a family plan. The deductible is the amount you'll pay out of pocket for medical expenses before your insurance pays anything.

Although, the HDHP maximum amount for annual out-of-pocket expenses (the amount that an individual is required to pay) will rise to $8,050 for self-only coverage and to $16,100 for family coverage, up from $7,500 and $15,000 from 2023, respectively.

The last-month rule comes with an important catch, though. You must stay enrolled in an HSA-eligible health plan for a one-year "testing period" running from December 1 of the year you contribute to December 31 of the next year.

The IRS does not allow you to use your HSA to pay for regular health insurance premiums, but there is an exception for unemployed individuals. If you lose your job, you may qualify to withdraw funds from your HSA to cover your health insurance premiums.

Two spouses with a family HDHP have a maximum annual HSA contribution of $8,300 in 2024. This contribution limit applies whether each spouse has their own HSA or if only one member of the family has an HSA.