In their latest update, the IRS has adjusted the health savings account limits for 2024. For self-only coverage, the minimum annual deductible is set at $1,600, while for family coverage, it’s $3,200. The annual out-of-pocket expenses shouldn’t exceed $8,050 for self-only coverage and $16,100 for family coverage. Individual deduction limits are $4,150 for self-only and $8,300 for family coverage. If you’re 55 or older, you can contribute an additional $1,000!
These changes, rising by more than 7%, reflect the impact of high inflation rates. HSAs are gaining attention due to their triple tax benefits – contributions are pretax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
At the end of 2022, Americans held $104 billion in 35.5 million HSAs, according to the Society for Human Resource Management. Considering an HSA for your healthcare savings? Consult a financial professional to make the best decision for your future!