The 2024 limits for HSA contributions have been published by the IRS with a notable, if not unsurprising, jump 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, those limits rose 7.1 percent, to an allowable maximum contribution of $8,300. Increases in these contribution limits do typically occur on an annual basis, however, the percentage increase has continued to grow in recent years. In 2021 going into the 2022 benefit year, rates increased by about 1.4 percent, then again by 5.5 percent from 2022 into 2023, and most recently, over a 7 percent increase for both self-only and family plans.
Those who participate in an HSA and are 55 years of age 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 of 2023, employers should begin conversations about changes they wish to make to their offerings, including whether they will elect to increase employer contributions to HSAs given the increased limits. Employees can ensure they are well-informed of the benefits available by reaching out to their InTANDEM HR account manager with any questions on health savings accounts and their complementary high-deductible medical plans.
