“Mr. HSA” Finalizes 2024 HSA Projections — More Big Changes Coming

by Mr. HSA, Roy Ramthun | Originally posted here

As many of you know, I track the data needed to make inflation adjustments for Health Savings Accounts from one year to the next. I have accurately predicted the annual adjustments by the Internal Revenue Service for the past 17 years.

With the April 12 release of the March inflation figures by the Bureau of Labor Statistics, I am now finalizing my projected HSA amounts for 2024.  You can find my final projections here.  Most of the amounts are even higher than I predicted back in February.

I am projecting that the HSA amounts will once again see large increases, on top of last year’s historic jump in the amounts.  This is good news for HSA owners as the contribution limits will once again rise much more than in prior years.  It also means that for the first time that married couples age 55 or older could contribute more than $10,000 in a year to their HSAs if both spouses are eligible to do so.

For HSA-qualified health insurance plans, the minimum deductibles and annual out-of-pocket limits will also increase much faster than in prior years.  This means health plans may need to change some of their plan designs for 2024.

The IRS will make these amounts official in the coming weeks.  However, employers, trustees, custodians, administrators, and insurance carriers can start making the necessary adjustments now.