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2024 HSA contribution limits

Health Benefits • December 6, 2023 at 12:19 PM • Written by: Holly Bengfort

A health savings account (HSA) is a tax-advantaged savings account that a family or individual can use to pay for their qualified medical expenses. HSAs are paired with a qualifying high-deductible health plan (HDHP) to help offset healthcare costs. Eligible expenses include medical, prescription, dental, or vision care services your individual or employer-sponsored plan doesn’t cover. The IRS adjusts the annual contribution limit, annual deductible amounts, and other limits for HSAs each year.

In this article, we'll go over the 2024 HSA contribution limits, HSA-qualified HDHPs, and eligibility requirements determined by the IRS.

Download our chart to learn how a health savings account compares to flexible spending accounts and health reimbursement arrangements

What are the HSA contribution limits for 2024?

Investing in your HSA makes handling the expected and unexpected medical expenses that life throws your way easier. For that reason, many people choose to contribute as much as possible to their HSA. But if you go over the annual maximum limit, you could be penalized for any excess contributions.

The IRS released the 2024 HSA guidelines in Revenue Procedure 2023-231. Here are the contribution limits:




2024 HSA contribution limit

(company + employee)



2024 HSA catch-up contributions

(age 55+)



Your voluntary contributions to your HSA are either tax-deductible or pre-tax if your employer takes the money out as a payroll deduction. Any unused amounts in your HSA roll over from year to year. Rollover contributions don't reduce your overall contribution limit for the year. To contribute to an HSA, you must have an eligible health plan. You can't have Medicare or be dependent on someone else's tax return.

How HSA contribution limits work

The limit on contributions is based on the calendar year, meaning the IRS prorates allowable contributions by the number of months an individual is eligible to contribute to an HSA. If you are 55 or older by the end of the year, you can make an additional $1,000 catch-up contribution to your HSA. The IRS also has a special rule for married people who have coverage together under an HDHP. If you’re married, and both of you are 55 or older, then you and your spouse can each make an additional contribution of $1,000.

For example, an eligible individual with coverage who has an HSA for seven months during the 2024 tax year can only contribute up to $2,420 ($4,150 ÷ 12 × 7). The additional catch-up contribution is also prorated, so those aged 55 and over can only make an additional contribution of $583, using the same example above.

Under the last-month rule by the IRS, if you're an eligible individual on the first day of the last month of your tax year, then you're considered an eligible individual for the entire year.

HSA tax penalties

While there are tax benefits to an HSA, you could face a tax penalty if you exceed the annual maximum contribution limit or use your HSA funds for ineligible expenses.

You would have to pay a 6% excise tax on excess contributions in the year you overcontributed if you don't withdraw the amount from your HSA before the tax filing deadline. Otherwise, the tax will apply to each year the excess contribution remains in your account. On top of the excise tax, the excess contribution would count as taxable income. You can't count it as a tax deduction when you file.

If you use the funds in your HSA for ineligible expenses, expect to spend more of your hard-earned money along with it. According to Fidelity Investments2, if you're younger than 65, you'll receive a 20% penalty and any applicable income taxes on what you withdraw. If you're 65 or older, you'll be able to use your HSA funds for ineligible expenses without a penalty. Still, you must pay income taxes on the money you spend.

What are the HDHP guidelines for 2024?

To be what the IRS considers an eligible individual for an HSA, you must have coverage through a health insurance plan that qualifies as an HDHP. The guidelines for HDHP qualification are adjusted each year according to minimum deductibles and maximum out-of-pocket limits, reflecting the highest amount a plan holder would have to pay on their own for out-of-pocket medical costs.

The IRS requires health insurance coverage to reflect the following amounts to qualify as an HDHP in 2024:


Self-only plans

Family plans

HDHP minimum annual deductible



HDHP maximum out-of-pocket expense



How do the new limits and guidelines compare with previous years' limits?

For 2023, the minimum annual deductible went up by $100 for eligible individual coverage and $200 for family coverage. The highest increase was with the maximum out-of-pocket amounts, where the limits rose $450 for individuals with self-only coverage and $900 for those with family coverage.

Given the rising inflation rate across the country, the IRS has consistently increased its limits to help mitigate its effects on health coverage. However, the limits for 2024 represent one of the biggest jumps in recent years.

Here's a chart to compare limits for 2023 and 2024:




HSA contribution limit

(company + employee)

Self-only: $3,850

Family: $7,750

Self-only: $4,150

Family: $8,300

HSA catch-up


(age 55+)



HDHP minimum

annual deductible

Self-only: $1,500

Family: $3,000


Family: $3,200

HDHP maximum

out-of-pocket amount

Self-only: $7,500

Family: $15,00

Self-only: $8,050

Family: $16,100

Can I combine an HSA with other health coverage benefits?

HSAs are an increasingly popular tax savings tool. Employer contributions toward their employees' HSAs can be a valuable part of employee health plans, helping them save on their out-of-pocket medical expenses.

However, HSAs are even more valuable when combined with a health reimbursement arrangement (HRA). With an HRA, an employer can offer their employees a set amount of tax-free money to reimburse their qualified expenses.

There's an HRA for every organization's size and budget. The qualified small employer HRA (QSEHRA) is made for small businesses with fewer than 50 full-time equivalent employees, while the individual coverage HRA (ICHRA) works for employers of all sizes. Organizations that already offer health insurance plans—including HDHPs—can pair them with group coverage HRAs (GCHRAs). The GCHRA is an excellent alternative to an HSA for employers wanting to make their overall benefits package more competitive.

If you have the option to pair an HRA with an HSA, you'll need to alter your HRA to conform with HSA requirements. You'll need to ensure that you have a limited-purpose QSEHRA that can only reimburse health insurance premiums, dental and vision expenses, and long-term care premiums.


HSAs are paired with a qualifying HDHP to make healthcare coverage more affordable. All employers and employees can make income tax-free contributions to an HSA, but the IRS sets annual limits on contributions. If you have excess contributions, you will face an excise tax.

When you understand the HSA contribution rules and deductible limits, you can make the most of the medical care benefit. This allows you and your employees to maximize contributions, get tax benefits, and save on out-of-pocket expenses. Investing in your employees' health benefits is the best way to show them you care about their health and well-being, as well as their financial future, while helping you recruit and retain top talent.

At PeopleKeep, we're experts on HRA administration. Set up a call now with one of our personalized benefits advisors to get started!

This article was originally published on May 19, 2021. It was last updated on December 6, 2023.

  1. https://www.irs.gov/pub/irs-drop/rp-23-23.pdf
  2. https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits

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Holly Bengfort

Holly is a content marketing specialist for PeopleKeep. Before joining the team in 2023, Holly worked in television news as a broadcast journalist. As an anchor and reporter, she communicated complex stories to the vast communities she served on a daily basis. Her background has given her a greater understanding of people and the issues that affect our lives. When Holly isn’t writing, she enjoys reading, exercising, and spending time at the beach.