HSA Limits Increase for 2024

June 8, 2023

HSA limit increase

Pre-tax or deductible contributions to a Health Savings Account (HSA) can be withdrawn tax-free to pay qualified current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Contribution limits are adjusted annually for inflation, and the 2024 limits were recently announced. They increase to $4,150 for individuals with self-only coverage (up $300 from 2023) and $8,300 for family coverage (up $550 from 2023). The additional catch-up contribution for individuals aged 55 or older before the end of the tax year remains at $1,000.

To take advantage of an HSA, individuals must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance, with the exception of insurance for accidents, disability, dental care, vision care, or long-term care. Medical expenses paid with HSA funds do not qualify for the medical expense deduction on a federal income tax return.

 

For the calendar year 2024, a qualifying HDHP must have a deductible of at least $1,600 for self-only coverage or $3,200 for family coverage (up $100 and $200, respectively, from 2023) and must limit annual out-of-pocket expenses of the beneficiary to $8,050 for self-only coverage and $16,100 for family coverage, an increase of $550 and $1,100, respectively, from 2023. As with contribution limits, maximum deductibles and out-of-pocket expense limits are adjusted for inflation annually.

Don’t hesitate to contact the office if you have questions about Health Savings Accounts.

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