Before we get into the 2024 HSA contribution limits, let's do a brief overview of HSAs -- what they are and who can use them.
What is a Health Savings Account (HSA)?
A health savings account (HSA) operates like a checking/savings account allowing you to contribute pre-tax funds (lowering your taxable income) and use those funds for eligible medical expenses (e.g., doctor visit copays, glasses and contact lenses, prescription medications, etc.).
Who is Eligible to Contribute to an HSA?
There are 3 essential requirements for you to be eligible to contribute to an HSA.
Be covered by a High Deductible Health Plan (HDHP).
Not be covered by a non-HDHP plan (e.g., Medicare, Flexible Spending Account (FSA), etc.) - there are some exceptions.
Not be claimed as a dependent on another person's tax return, such as a parent.
What is a High Deductible Health Plan (HDHP)?
An HDHP is a health insurance plan that typically has a higher deductible, but lower monthly premium, compared to a similar traditional Preferred Provider Organization (PPO) insurance plan. These plans are ideal for participants who prefer to pay a lower monthly premium (fixed cost) in exchange for possibly paying more at the point of service (variable costs) and can be a great tax/savings vehicle if you anticipate minimal medical expenses in the calendar year but still want to have health insurance to mitigate your risks.
Each calendar year, the Internal Revenue Service (IRS) sets the HDHP deductible and out-of-pocket requirements.
2024 | 2023 | YOY Change | |
HDHP Minimum Deductible | Individual: $1,600 Family: $3,200 | Individual: $1,500 Family: $3,000 | Individual: $100 Family: $200 |
HDHP Maximum Out-of-Pocket | Individual: $8,050 Family: $16,100 | Individual: $7,500 Family: $15,000 | Individual: $550 Family: $1,100 |
What are the HSA Contribution Limits in 2024?
Each calendar year, the Internal Revenue Service (IRS) sets the HSA contribution limits, which typically increase annually to account for inflation and are higher for individuals with family health insurance coverage vs individual coverage.
2024 | 2023 | YOY Change | |
HSA Contribution Limit (1) | Individual: $4,150 Family: $8,300 | Individual: $3,850 Family: $7,750 | Individual: +$300 Family: +$550 |
HSA Catch-up Contributions (2) | $1,000 | $1,000 | None |
(1) If you are employed, the HSA contribution limits reflect the total amount of combined employer and employee contributions.
(2) If you are 55 years old or older, your HSA contribution limit increases by $1,000.
Darron J. Lasley
Darron Lasley is a certified Senior Professional in Human Resources (SPHR) and Certified Professional Resume Writer (CPRW). He is an executive HR/Talent leader and career strategist with more than 15 years of experience in human resources and recruiting in health care, technology, financial services, and more.