In Revenue Procedure 2023-23, [1] the IRS disclosed the 2024 inflation-adjusted figures for both Health Savings Accounts (HSAs) and excepted-benefit Health Reimbursement Arrangements (HRAs). Notably, these figures have seen a more substantial increase than in previous years. This hike can largely be attributed to the heightened inflation rates observed over the past year.

In terms of Health Savings Accounts (HSAs), the annual contribution limit for an individual with self-only coverage under a high deductible health plan has increased from $3,850 in 2023 to $4,150 in 2024. This represents an increase of $300. For individuals with family coverage, the annual contribution limit has gone up from $7,750 in 2023 to $8,300 in 2024, an increase of $550.

The definition of a “high deductible health plan” has also seen changes. In 2023, such a plan was defined as a health plan with an annual deductible of not less than $1,500 for self-only coverage or $3,000 for family coverage. In 2024, these minimum deductibles have increased to $1,600 and $3,200 respectively. In terms of annual out-of-pocket expenses (excluding premiums), the limit for self-only coverage has increased from $7,500 in 2023 to $8,050 in 2024, and for family coverage, the limit has risen from $15,000 in 2023 to $16,100 in 2024.

For excepted benefit health reimbursement arrangements (HRAs), the maximum amount that can be newly made available for the plan year has increased from $1,950 in 2023 to $2,100 in 2024, a rise of $150.

In summary, for both HSAs and HRAs, all limits and thresholds have seen an increase from 2023 to 2024, a trend that’s typically attributable to annual adjustments for inflation.

[1] Revenue Procedure 2023-23, May 16, 2023, https://www.taxnotes.com/research/federal/irs-guidance/revenue-procedures/irs-announces-2024-inflation-adjusted-amounts-for-hsas/7gpf1 (retrieved May 20, 2023)