2 min read

Important Changes to Medical Savings Account Rules for Tax Year 2024


Content provided for general information. Talk to your advisor to learn about recent updates or other rules that may apply to your situation.

As the calendar turns to 2024, participants in Medical Savings Accounts (MSAs) will need to be aware of significant changes to the rules governing self-only and family coverage. The Internal Revenue Service (IRS) has announced adjustments to annual deductibles and out-of-pocket expense limits, aiming to strike a balance between ensuring access to healthcare and managing the financial implications for participants. In this blog post, we'll break down the changes for tax year 2024 and provide a clear understanding of the new regulations.

Self-Only Coverage

For participants with self-only coverage in a Medical Savings Account, the annual deductible must now be a minimum of $2,800, a $150 increase from the previous tax year. This adjustment reflects the rising costs of healthcare and aims to maintain a reasonable threshold for participants. However, the maximum annual deductible has also increased to $4,150, up by $200 from 2023. This upper limit ensures that participants are not burdened with excessively high deductibles, striking a balance between cost-sharing and accessibility to healthcare services.

In addition to the changes in deductibles, the maximum out-of-pocket expense amount for self-only coverage has been increased to $5,550, marking a $250 rise from the previous tax year. This adjustment recognizes the growing expenses associated with medical care and seeks to protect participants from exorbitant costs while maintaining financial responsibility.

Family Coverage

Current subscribers click here to log in.