Health Savings Account Contribution Limits Will Increase in 2024
Information you can use to add additional funds to your health savings account in 2024.
Health Savings Accounts are already an unsung hero of saving money in an account for medical expenses without paying taxes on those funds. But in 2024, the benefits will get even better because the Internal Revenue Service has increased the contribution limits starting Jan.1 of that year. The IRS cites inflation as the need for the change.
If your employer or health insurance provider offers an HSA, request information about opening an account. If you are a member of a high deductible health care plan, you can open an account on your own through your bank or health care plan.
If you already have an HSA, these are the changes coming up when the calendar rolls to 2024. You can see all the changes in the chart below.
| Contributions | 2024 | 2023 | Change |
|---|---|---|---|
| HSA contribution limit employer + employee |
Self-only: $4,150 Family: $8,300 |
Self-only: $3,850 Family: $7,750 |
Self-only: +$300 Family: +$550 |
| HSA catch-up contributions age 55 and older |
$1,000 | $1,000 | No change (set by statute) |
| HDHP minimum deductibles | Self-only: $1,600 Family: $3,200 |
Self-only: $1,500 Family: $3,000 |
Self-only: +$100 Family: +$200 |
| HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) |
Self-only: $8,050 Family: $16,000 |
Self-only: $7,500 Family: $15,000 |
Self-only: +$550 Family: +$1,100 |
HSAs are typically used for qualified expenses like dental work, prescription or over-the-counter medications, insurance co-pays or deductibles.
Many Americans don’t know that the funds in an HSA (minimums vary by employer) can also be invested to earn additional money for expenses or retirement.
This material is for informational purposes only. Always consult a qualified tax advisor for information as to how taxes may affect your particular situation.
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