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Benefits Bulletin: Health & Welfare Plans – May 2023
Blog
May 19, 2023
IRS Releases 2024 Inflation-Adjusted Amounts For HSAS, HDHPS, And HRAS
The IRS recently released Rev. Proc 2023-23 listing the 2024 indexed amounts for health savings accounts (HSAs), high deductible health plans (HDHPs), and excepted-benefit health reimbursement arrangements (HRAs). The following table lists the current 2023 amounts and the new 2024 amounts:
| Calendar Year 2023 | Calendar Year 2024 | |||
| Applicable Limit | Self-Only Coverage | Family Coverage | Self-Only Coverage | Family Coverage |
| HSA Annual Contribution Limit | $3,850 | $7,750 | $4,150 | $8,300 |
| HDHP Minimum Annual Deductible | $1,500 | $3,000 | $1,600 | $3,200 |
|
HDHP Out-of-Pocket Maximum Amount | $7,500 | $15,000 | $8,050 | $16,100 |
The Revenue Procedure also provides that for plan years beginning in 2024, the maximum amount that may be made newly available for an excepted-benefit HRA for the plan year is $2,100 (up from $1,950 in 2023). The HSA maximum annual catch-up contribution (for individuals who are 55 and older) is set by statute at $1,000 and therefore will not change from 2023 to 2024.
Winston Takeaway: Employers should communicate these new limits to participants during their 2024 open enrollment, and update their plan documents accordingly. Please contact a Winston & Strawn Employee Benefits and Executive Compensation attorney with questions regarding these updates and how they may impact your benefit plans.
Winston & Strawn Paralegal Kristine Lofquist also contributed to this blog post.
This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.