For this week’s #WednesdayWisdom, the IRS has just provided important guidance on the inflation-adjusted amounts for Health Savings Accounts (HSAs) in 2024. Here’s what you need to know:
- Annual Contribution Limits: Individuals with self-only coverage under a High-Deductible Health Plan (HDHP) can contribute up to $4,150 to their HSAs, while those with family coverage can contribute up to $8,300. This is a significant increase from 2023.
- Catch-Up Contribution: Participants aged 55 and older can make an additional $1,000 catch-up contribution to their HSAs in both 2024 and 2023.
- HDHP Definitions: In 2024, an HDHP will have a minimum annual deductible of $1,600 for self-only coverage and $3,200 for family coverage. The maximum annual out-of-pocket expenses for these plans will be $8,050 and $16,100, respectively.
HSAs offer numerous advantages, including pre-tax contributions, tax-free accumulation, and tax-free withdrawals for qualified medical expenses. They also are portable, providing flexibility even if you change employers. Contact your employee benefits and tax advisors to explore the benefits of HSAs for your organization and read more in this article.
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