New 2024 HSA Limits Announced

HSA limits for 2024 were announced on May 16, 2023. The IRS released Revenue Procedure 2023-23, which provides limits related to high deductible health plans (HDHP) and HSAs for calendar year 2024. The 2024 limits are as follows:

Self-Only Enrollment in an HDHP 2024 HSA Limits:

Maximum annual contribution: $4,150 ($3,850 in 2023)
Minimum deductible for the HDHP to be HSA-qualified: $1,600 ($1,500 in 2023)
Maximum HDHP out-of-pocket limit: $8,300 ($7,750 in 2023)

Family Enrollment in an HDHP 2024 HSA Limits:

Maximum annual contribution: $8,300 ($7,750 in 2023)
Minimum deductible for the HDHP to be HSA-qualified: $3,200 ($3,000 in 2023)
Maximum HDHP out-of-pocket: $16,100 ($15,000 in 2023)
HSA account holders age 55+ can contribute an additional $1,000 on top of the maximum as a catch-up contribution.

Pro-tip: HSA account holders age 55+ can contribute an additional $1,000 on top of the maximum as a catch-up contribution.

What does this mean for me?

If you don’t know by now, maxing out your contribution to your HSA can mean a world of difference in the investment of your health and in your future retirement. The more dollars you can pack into your account, the more opportunity you have to earn a greater return on your investment, and afford both planned and unplanned, covered medical expenses with the help of pre-tax dollars.

The key is to work smarter, not harder. So how can your HSA funds work smarter for you? By maxing out your contribution, consider the healthcare essentials you require on a monthly basis like over-the-counter medicines, or even period care products. If you experience a chronic condition or illness such as diabetes, your HSA has you covered there too. Diagnostic products like blood glucose monitors and even lancet refills can make all the difference in managing your health needs that much more affordable.

Remember, your HSA is a great long-term savings tool, but it can also help in the short-term to offset the cost of your health needs associated with a HDHP. Consider your short-term healthcare purchases a long-term investment in a healthy retirement.

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