Each year, the IRS announces new maximum contribution limits for health savings accounts (HSA). Use this HR communication template to prepare your employees for the new year by updating their HSA contributions accordingly.
A health savings account (HSA) is a personal bank account with significant tax advantages that can be used by an individual to pay for qualified medical expenses, typically on high-deductible health insurance plans.
People with HSAs need to be enrolled in a compatible, high-deductible health plan (HDHP) to utilize their benefits properly. They can then use the money from their HSAs for qualified medical expenses, which can be determined by reviewing the HDHP.
The IRS released 2022-2024 cost-of-living adjusted limits for HSAs and HDHPs due to expected inflation. These new contribution caps include:
| 2023 | 2024 | |
|
Individual Contribution Limit |
$3,850 | $4,150 |
| Family Contribution Limit | $7,750 | $8,300 |
| Catch-up Contribution Limit (for those over the age of 55) | $1,000 | $1,000 |
| Max Individual out-of-pocket | $7,500 | $8,050 |
| Max Family out-of-pocket | $15,000 | $16,100 |
Use the following template to remind employees about the updated HSA caps and how they can make adjustments to their contributions:
Team,
Each year, the IRS announces contribution limits for numerous tax provisions and healthcare savings accounts. Sometimes, the IRS makes adjustments to account for inflation and changes in the cost of living.
For 2024, some contribution limits were slightly increased for health savings accounts (HSA). See the chart below for reference:
|
2023 |
2024 |
|
|
Individual Contribution Limit |
$3,850 |
$4,150 |
|
Family Contribution Limit |
$7,750 |
$8,300 |
|
Catch-up Contribution Limit (for those over age of 55) |
$1,000 |
$1,000 |
|
Max Individual Out-of-Pocket |
$7,500 |
$8,050 |
|
Max Family Out-of-Pocket |
$15,000 |
$16,100 |
Employees who want to update their contribution amount can contact [contact information] or make adjustments to your elections using [name of HRIS].
If you have any questions about HSA contributions or other benefits, please contact [contact information].
Thank you,
[name]
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